Question

MULTIPLE CHOICE PLEASE ANSWER ASAP. THANK YOU.

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

Answer 8.

Current Ratio = 3.20
Current Assets / Current Liabilities = 3.20
Current Assets = 3.20 * Current Liabilities

Working Capital = $375,551
Current Assets - Current Liabilities = $375,551
3.20 * Current Liabilities - Current Liabilities = $375,551
2.20 * Current Liabilities = $375,551
Current Liabilities = $170,705

Current Assets = 3.20 * $170,705
Current Assets = $546,256

After short-term liability of $82,906:

Current Assets = $546,256 - $82,906
Current Assets = $463,350

Current Liabilities = $170,705 - $82,906
Current Liabilities = $87,799

Working Capital = Current Assets - Current Liabilities
Working Capital = $463,350 - $87,799
Working Capital = $375,551

Answer 11.

Percentage increase in sale = (Current year sales - Preceding year sales) / Preceding year sales
Percentage increase in sale = ($758,619 - $520,482) / $520,482
Percentage increase in sale = 45.8%

Answer 12.

Dividend paid = Beginning dividend payable + Dividend declared - Ending dividend payable
Dividend paid = $10,358 + $72,881 - $15,733
Dividend paid = $67,506

Answer 15.

Cash Flows from Operating Activities = Net income - Increase in accounts receivables
Cash Flows from Operating Activities = $143,428 - ($67,778 - $49,594)
Cash Flows from Operating Activities = $125,244