A) $263,800.
B) $432,200.
C) $171,000.
D) $167,800.
E) $252,000.
170) A company acquires equipment for $75,000 cash. This represents a(n):
A) Operating activity.
B) Investing activity.
C) Financing activity.
D) Revenue activity.
E) Expense activity.
171) A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n):
A) Revenue activity.
B) Operating activity.
C) Expense activity.
D) Investing activity.
E) Financing activity.
172) Zippy had cash inflows from operations of $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:
A) $38,500 increase.
B) $38,500 decrease.
C) $132,500 decrease.
D) $132,000 increase.
E) $11,500 decrease.
173) Zapper has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:
A) $223,000.
B) $240,000.
C) $268,000.
D) $274,000.
E) $208,000.
174) Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners during the period. Its ending equity is:
A) $365,000.
B) $239,000.
C) $189,000.
D) $315,000.
E) $277,000.
175) Rent expense appears on which of the following statements?
A) Balance sheet.
B) Income statement.
C) Statement of owner's equity.
D) Income statement and balance sheet.
E) Statement of cash flows and balance sheet.
176) A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity?
A) $17,000.
B) $29,000.
C) $71,000.
D) $88,000.
E) $105,000.
177) A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?
A) $45,000.
B) $92,000.
C) $98,000.
D) $210,000.
E) $282,000.
178) Flitter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets:
A) 8.8%.
B) 7.0%.
C) 5.8%.
D) 35.0%.
E) 23.3%.
179) Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.
A) 7.1%.
B) 7.5%.
C) 6.7%.
D) 20.0%.
E) 18.8%.
180) Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
A) $61,000 increase.
B) $37,000 increase.
C) $7,000 decrease.
D) $7,000 increase.
E) $34,000 decrease.
181) Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.
A) $30,000.
B) $83,000.
C) $64,000.
D) $19,000.
E) $49,000.
182) Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and withdrawals by owners of $9,000. Calculate the ending equity.
A) $88,000.
B) $25,000.
C) $97,000.
D) $38,000.
E) $47,000.
183) Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and withdrawals by the owner of $12,000. The owner made no investments during the year. Calculate the ending equity.
A) $(5,000).
B) $29,000.
C) $5,000.
D) $99,000.
E) $75,000.
184) A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?
A) $104,000.
B) $76,000.
C) $32,000.
D) $68,000.
E) $176,000.
185) If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation during the first month?
A) Assets would decrease $700 and liabilities would decrease $700.
B) Assets would decrease $700 and equity would increase $700.
C) Assets would increase $700 and equity would decrease $700.