Question

MC Qu. 168 Alvez reports net income...

Alvez reports net income of $352,500 for the year ended December 31. It also reports $118,400 depreciation expense and a $12,850 loss on the sale of equipment. Its comparative balance sheet reveals a $51,600 increase in accounts receivable, a $13,050 decrease in prepaid expenses, a $19,950 increase in accounts payable, a $16,300 decrease in wages payable, a $95,900 increase in equipment, and a $128,500 decrease in notes payable. Calculate the net increase in cash for the year.

Multiple Choice

$224,450.

$448,850.

$237,300.

$352,950.

$320,350.

MC Qu. 165 Bagwells net income for the year...

Bagwell's net income for the year ended December 31, Year 2 was $201,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

At December 31	Year 2			Year 1
Common Stock, $5 par value	$	516,000		$	464,400
Paid-in capital in excess of par		964,000			867,400
Retained earnings		704,000			596,400
Multiple Choice $93,400. $51,600. $107,600. $148,200. $96,600.

Answer 1

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	Net Income		$         352,500
	Adjustemnt
	Depreciation		$         118,400
	Loss on sale of Equipment		$           12,850
	Increase in Accounts Receivable		$          -51,600
	decrease in prepaid expenses		$           13,050
	decrease in prepaid expenses		$           19,950
	decrease in wages payable		$          -16,300
	increase in equipment		$          -95,900
	decrease in notes payable		$       -128,500
	Net increase in Cash		$         224,450

Retained Earning, Year 1	$         596,400
Add: Net Income	$         201,000
Less: Retained Earning, Year 2	$       -704,000
Dividends Paid	$           93,400