Solution: $650,000 - $154,000 - $49,000 - $36,000 = $411,000
(Collections from customers – pmts. for operating expenses)
179. Dr. Mark Veterinary Services recorded the following cash transactions for the year:
Paid $154,000 for salaries.
Paid $85,000 to purchase equipment.
Paid $49,000 for utilities, supplies, insurance, and advertising.
Paid $36,000 for rent.
Issued shares of stock for $60,000
Paid $28,000 in dividends.
Collected $650,000 from customers.
Paid $3,600 to purchase investments.
What was the company’s net cash provided (used) by investing activities?
a. $25,000
b. ($85.000)
c. ($88,600)
d. The amount cannot be determined from the information provided.
Ans: C, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: ($85,000 + $3,600 = $88,600)
(Purch. Equip. + Purch. Invest.)
180. Dr. Mark Veterinary Services recorded the following cash transactions for the year:
Paid $154,000 for salaries.
Paid $85,000 to purchase equipment.
Paid $49,000 for utilities, supplies, insurance, and advertising.
Paid $36,000 for rent.
Issued shares of stock for $60,000
Paid $28,000 in dividends.
Collected $650,000 from customers.
Paid $3,600 to purchase investments.
What was the company’s net cash provided (used) by financing activities?
a. $32,000
b. $60,000
c. $63,600
d. The amount cannot be determined from the information provided.
Ans: A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: $60,000 - $28,000 = $32,000
(Issu. Stock – Pmt. Div.)
181. Barrow Company recorded the following cash transactions for the year:
Paid $115,000 for salaries.
Paid $40,000 to purchase office equipment.
Paid $9,000 for utilities.
Sold investments for cash of $5,000.
Paid $11,000 in dividends.
Collected $295,000 from customers.
Issued shares for cash of $120,000.
What was Barrow’s net cash provided (used) by financing activities?
a. $60,000
b. $65,000
c. $69,000
d. $109,000
Ans: D, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: $120,000 - $11,000 = $109,000
(Issu. Shares – Pmt. Div)
182. Barrow Company recorded the following cash transactions for the year:
Paid $115,000 for salaries.
Paid $40,000 to purchase office equipment.
Paid $9,000 for utilities.
Sold investments for cash of $5,000.
Paid $11,000 in dividends.
Collected $295,000 from customers.
Issued shares for cash of $120,000.
What was Barrow’s net cash provided (used) by investing activities?
a. ($24,000)
b. ($35,000)
c. ($40,000)
d. $80,000
Ans: B, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution: ($40,000) + $5,000 = ($35,000)
(-Purch. Equip. + Sale of Invest.)
183. Barrow Company recorded the following cash transactions for the year:
Paid $115,000 for salaries.
Paid $40,000 to purchase office equipment.
Paid $9,000 for utilities.
Sold investments for cash of $5,000.
Paid $11,000 in dividends.
Collected $295,000 from customers.
Issued shares for cash of $120,000.
What was Barrow’s net cash provided (used) by operating activities?
a. ($40,000)
b. $160,000
c. $131,000