d. $180,000
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: $295,000 - $115,000 - $9,000 = $131,000
(Cash coll. – sal. paid – util. paid)
184. Pacifica Company recorded the following cash transactions for the year:
Paid $255,000 for salaries.
Paid $60,000 to purchase equipment.
Collected $7,200 from the sale of investments
Repaid $48,000 of loan principle
Paid $220,000 for other operating expenses.
Paid $112,000 in dividends.
Collected $652,000 from customers.
What was Pacifica’s net cash provided (used) by investing activities?
a. ($ 60,000)
b. ($52,800)
c. $7,200
d. $67,200
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: ($60,000) + $7,200 = ($52,800)
(-Purch. equip. + Sale of Invest.)
185. Pacifica Company recorded the following cash transactions for the year:
Paid $255,000 for salaries.
Paid $60,000 to purchase equipment.
Collected $7,200 from the sale of investments
Repaid $48,000 of loan principle
Paid $220,000 for other operating expenses.
Paid $112,000 in dividends.
Collected $652,000 from customers.
What was Pacifica’s net cash provided (used) by operating activities?
a. $65,000
b. $177,000
c. $182,000
d. $184,200
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: $652,000 - $255,000 - $220,000 = $177,000
(Collect. – Pmt. Sal. – Pmt. Op. Exp.)
186. Pacifica Company recorded the following cash transactions for the year:
Paid $255,000 for salaries.
Paid $60,000 to purchase equipment.
Collected $7,200 from the sale of investments
Repaid $48,000 of loan principle
Paid $220,000 for other operating expenses.
Paid $112,000 in dividends.
Collected $652,000 from customers.
What was Pacifica’s net cash provided (used) by financing activities?
a. $48,000
b. ($52,800)
c. ($152,800)
d. ($160,000)
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: ($48,000) + ($112,000) = ($160,000)
Answers to Multiple Choice Questions
41. b 61. a 81. d 101. c 121. c 141. b 161. b 181. d
42. c 62. d 82. c 102. b 122. c 142. c 162. d 182. b
43. b 63. b 83. c 103. b 123. b 143. d 163. d 183. c