Question

PLEASE PLEASE ANSWER AS SOON AS POSSIBLE.

1. Use the information below for Harding Company to answer the question that follow.

Harding Company
Accounts payable	$27,565
Accounts receivable	71,510
Accrued liabilities	6,541
Cash	16,862
Intangible assets	42,141
Inventory	77,866
Long-term investments	103,355
Long-term liabilities	70,445
Marketable securities	33,752
Notes payable (short-term)	23,329
Property, plant, and equipment	622,170
Prepaid expenses	2,338

Based on the data for Harding Company, what is the amount of working capital?

a.$969,994

b.$202,328

c.$619,832

d.$144,893

4. The net income reported on the income statement for the current year was $299,087. Depreciation recorded on fixed assets and amortization of patents for the year were $40,017 and $8,817, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$44,572	$61,677
Accounts Receivable	126,254	108,076
Inventories	108,065	87,301
Prepaid Expenses	2,527	8,758
Accounts Payable (merchandise creditors)	50,189	68,635

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a.$284,286

b.$308,979

c.$296,764

d.$370,012

5. The current period statement of cash flows includes the following:

Cash balance at the beginning of the period	$405,879
Net cash flow from operating activities	182,533
Net cash flow used for investing activities	52,196
Net cash flow used for financing activities	87,070

The cash balance at the end of the period is

a.$449,146

b.$266,613

c.$727,678

d.$501,342

6. Based on the following data, what is the accounts receivable turnover?

Sales on account during year	$481,499
Cost of goods sold during year	213,323
Accounts receivable, beginning of year	43,966
Accounts receivable, end of year	51,797
Inventory, beginning of year	99,266
Inventory, end of year	119,283

a.2.3

b.11

c.10.1

d. 4

8. A company with working capital of $375,551 and a current ratio of 3.2 pays a $82,906 short-term liability. The amount of working capital immediately after payment is

a.$551,149

b.$463,350

c.$375,551

d.$87,799

11. Assume the following sales data for a company:

	Current year	$758,619
	Preceding year	520,482

What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)?

a.31.4%

b.14.4%

c.77.1%

d.45.8%

12. Cash dividends of $72,881 were declared during the year. Cash dividends payable were $10,358 at the beginning of the year and $15,733 at the end of the year. The amount of cash for the payment of dividends during the year is

a.$67,506

b.$72,881

c.$83,239

d.$98,972

15. Accounts receivable from sales transactions were $49,594 at the beginning of the year and $67,778 at the end of the year. Net income reported on the income statement for the year was $143,428. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be

a.$143,428

b.$18,184

c.$125,244

d.$161,612

Answer 1

		(Figure in $)
1	Working Capital = Current Assets - Current Liabilities
	Current Assets
	Accounts receivable	71,510
	Cash	16,862
	Inventory	77,866
	Marketable securities	33,752
	Prepaid expenses	2,338
		2,02,328
	Current Liabilites
	Accounts payable	27,565
	Accrued liabilities	33,752
	Notes payable (short-term)	23,329
		84,646
	Working capital	2,02,328
4	CASH FLOW FROM OPERATING ACTIVITIES
	Net Income	2,99,087
	Adjustment For:
	Depreciation	40,017
	Amortisation	8,817
	Increase in Accounts Receivable	-18,178
	Increase in Inventories	-20,764
	Decrease in Prepaid Expenses	6,231
	Decrease in Accounts Payable (merchandise creditors)	-18,446
	Cash From Operating Activities Before Taxes	2,96,764
	Less: Taxes paid during the year	-
	NET CASH FROM OPERATING ACTIVITIES		2,96,764
5
	Net cash flow from operating activities	1,82,533
	Net cash flow used for investing activities	-52,196
	Net cash flow used for financing activities	-87,070
	Cash balance at the beginning of the period	4,05,879
	cash balance at the end of the period	4,49,146
6	Accounts receivable turnover = Net credit sales / Average accounts receivable
	Accounts receivable turnover = 481,499 / [(43,966 + 51,797)/2]
	Accounts receivable turnover = 10.1