1a. A company's Inventory balance at the end of the year was
$198,800 and $212,000 at the beginning of the year. Its Accounts
Payable balance at the end of the year was $96,000 and $90,800 at
the beginning of the year, and its cost of goods sold for the year
was $732,000. The company's total amount of cash payments for
merchandise inventory during the year equals:
a. $724,000
b. $732,000
c. $750,400
d. $713,600
e. $740,000
1b. Use the following information to calculate cash paid for
income taxes during the year:
Income tax expense
$
68,000
Income tax payable, January 1
16,600
Income tax payable, December 31
20,200
a. $68,000
b. $84,600
c. $31,200
d. $64,400
e. $88,200
1c. An examination of the company's income statement showed the
following: net income, $125,000; depreciation expense, $35,500; and
gain on sale of long-term plant assets, $9500. An examination of
the company's current assets and current liabilities showed the
following changes: accounts receivable decreased $10,500;
merchandise inventory increased $23,500; prepaid expenses increased
$7,300; accounts payable increased $4,500. Using the indirect
method, calculate the net cash provided by or used by operating
activities.
a. $147,800
b. $154,600
c. $175,800
d. $149,800
e. $135,200