activities
References
Multiple Choice Learning Objective: 01-08
Prepare a statement of cash
flows.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
99.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1. Acquired $6,000 cash from issuing common stock.
2. Borrowed $4,400 from a bank.
3. Earned $6,200 of revenues.
4. Incurred $4,800 in expenses.
5. Paid dividends of $800.
Lexington Company engaged in the following transactions during Year 2:
1. Acquired an additional $1,000 cash from the issue of common stock.
2. Repaid $2,600 of its debt to the bank.
3. Earned revenues, $9,000.
4. Incurred expenses of $5,500.
5. Paid dividends of $1,280.
What is the net cash flow from financing activities on Lexington's statement of cash flows for Year 2?
$2,880 outflow
$2,880 inflow
$1,000 outflow
$1,000 inflow
$1,000 cash inflow from issuing stock − $2,600 cash outflow for loan repayment − $1,280 cash outflow for dividends = $2,880 cash outflow for financing
activities
References
Multiple Choice Learning Objective: 01-08
Prepare a statement of cash
flows.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
100.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $4,500 cash from issuing common stock.
2) Borrowed $2,950 from a bank.
3) Earned $3,850 of revenues.
4) Incurred $2,550 in expenses.
5) Paid dividends of $550.
Lexington Company engaged in the following transactions during Year 2:
1) Acquired an additional $1,250 cash from the issue of common stock.
2) Repaid $1,825 of its debt to the bank.
3) Earned revenues, $5,250.
4) Incurred expenses of $3,050.
5) Paid dividends of $1,540.
The amount of total assets on Lexington's balance sheet at the end of Year 1 was:
$8,100.
$1,550.
$3,950.
$8,200.
$0 beginning balance + $4,500 (cash) + $2,950 (cash) + $3,850 (cash) − $2,550 (cash) − $550 (cash) = $8,200
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
101.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1. Acquired $6,000 cash from issuing common stock.
2. Borrowed $4,400 from a bank.
3. Earned $6,200 of revenues.
4. Incurred $4,800 in expenses.
5. Paid dividends of $800.
Lexington Company engaged in the following transactions during Year 2:
1. Acquired an additional $1,000 cash from the issue of common stock.
2. Repaid $2,600 of its debt to the bank.
3. Earned revenues, $9,000.
4. Incurred expenses of $5,500.
5. Paid dividends of $1,280.
The amount of total assets on Lexington's balance sheet at the end of Year 1 was:
$11,000
$12,000
$1,600
$7,600
$0 beginning balance + $6,000 (cash) + $4,400 (cash) + $6,200 (cash) − $4,800 (cash) − $800 (cash) = $11,000
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
102.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $4,400 cash from issuing common stock.
2) Borrowed $2,900 from a bank.
3) Earned $3,800 of revenues.
4) Incurred $2,540 in expenses.
5) Paid dividends of $540.
Lexington Company engaged in the following transactions during Year 2:
1) Acquired an additional $1,200 cash from the issue of common stock.
2) Repaid $1,790 of its debt to the bank.
3) Earned revenues, $5,200.
4) Incurred expenses of $3,030.
5) Paid dividends of $1,480.
The amount of retained earnings on Lexington's balance sheet at the end of Year 1 was: