WGU C213 Topic Five Study Guide
a statement of cash flows explains what? - ANS - the change during the period in
cash and cash equivalents
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
What was Avondale's net cash provided by (used in) operating activities?
2,016,000
$376,000
$516,000
$360,000 - ANS - $376,000
Cash provided by operating activities: $2,000,000 - $1,500,000 - $20,000 - $120,000
+ $10,000 + $6,000 = $376,000
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
, What was Avondale's net increase in cash for the year?
$576,000
$266,000
$306,000
$376,000 - ANS - $376,000
Net increase in cash: $2,000,000 - $1,500,000 - $20,000 - $120,000 + $10,000 +
$6,000 - $150,000 - $50,000 + $300,000 - $100,000 = $376,000
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
What was Avondale's total net increase in cash for the year provided by (used in)
financing activities?
$300,000
$150,000
$100,000
$200,000 - ANS - $200,000
Cash provided by financing activities: $300,000 - $100,000 = $200,000
\Cash equivalents - ANS - short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds
\cash flow patterns - ANS - Operating (should be positive). Must generate cash
that's positive
Investing (should be negative). Positive investing cash flow means that you are
LIQUIDATING
a statement of cash flows explains what? - ANS - the change during the period in
cash and cash equivalents
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
What was Avondale's net cash provided by (used in) operating activities?
2,016,000
$376,000
$516,000
$360,000 - ANS - $376,000
Cash provided by operating activities: $2,000,000 - $1,500,000 - $20,000 - $120,000
+ $10,000 + $6,000 = $376,000
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
, What was Avondale's net increase in cash for the year?
$576,000
$266,000
$306,000
$376,000 - ANS - $376,000
Net increase in cash: $2,000,000 - $1,500,000 - $20,000 - $120,000 + $10,000 +
$6,000 - $150,000 - $50,000 + $300,000 - $100,000 = $376,000
\Avondale Inc. had the following cash transactions during 2012:
Sales receipts $2,000,000
Inventory payments 1,500,000
Interest payments 20,000
Wage payments 120,000
Dividend receipts 10,000
Interest receipts 6,000
Equipment purchased 150,000
Stock of Canton Company purchased 50,000
Stock issued 300,000
Repaid a note (nonoperating) 100,000
What was Avondale's total net increase in cash for the year provided by (used in)
financing activities?
$300,000
$150,000
$100,000
$200,000 - ANS - $200,000
Cash provided by financing activities: $300,000 - $100,000 = $200,000
\Cash equivalents - ANS - short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds
\cash flow patterns - ANS - Operating (should be positive). Must generate cash
that's positive
Investing (should be negative). Positive investing cash flow means that you are
LIQUIDATING
