ACCTG21 STATEMENT OF CASH FLOWS

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. Lax Company provied the following information during the current year.

Dividend received 500,000

Dividend paid 1,000,000
Cash received from cutomers 9,000,000
Proceeds from issuing share capital 1,500,000
Interest received 200,000
Proceeds from sale of long term investments 2,000,000
Cash paid on long term debt 6,000,000
Interest paid on ong term debt 400,000
Income taxes oaid 300,000
Cash balance, January 1 1,800,000

What is the net cash provided by operating activities for the current year using direct method?
a. 3,000,000 c. 2,700,000
b. 3,300,000 d. 2,000,000
____ 2. Lax Company provied the following information during the current year.

Dividend received 500,000

Dividend paid 1,000,000
Cash received from cutomers 9,000,000
Proceeds from issuing share capital 1,500,000
Interest received 200,000
Proceeds from sale of long term investments 2,000,000
Cash paid on long term debt 6,000,000
Interest paid on ong term debt 400,000
Income taxes oaid 300,000
Cash balance, January 1 1,800,000

What is the net cash provided by investing activities?

a. 2,500,000 c. 2,200,000
b. 2,000,000 d. 0
____ 3. Lax Company provied the following information during the current year.

Dividend received 500,000

Dividend paid 1,000,000
Cash received from cutomers 9,000,000
Proceeds from issuing share capital 1,500,000
Interest received 200,000
Proceeds from sale of long term investments 2,000,000
Cash paid on long term debt 6,000,000
Interest paid on ong term debt 400,000
Income taxes oaid 300,000
 Cash balance, January 1 1,800,000

What is the net cash provided by financing activities?

a. 1,500,000 c. 500,000
b. 1,000,000 d. 0
____ 4. Star Company provided the following data for the preparation of statement of cash flows for the current year
usinf the direct method:
Cash balance, beginnig 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000

What is the net cash provided by operating activities?

a. 1,900,000 c. 2,350,000
b. 2,900,000 d. 400,000
____ 5. Star Company provided the following data for the preparation of statement of cash flows for the current year
usinf the direct method:
Cash balance, beginnig 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000

What is the net cash used in financial activities?

a. 3,000,000 c. 1,800,000
b. 2,000,000 d. 4,200,000
____ 6. Star Company provided the following data for the preparation of statement of cash flows for the current year
usinf the direct method:
Cash balance, beginnig 1,500,000
Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividend 2,000,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000
 What is the cash balance at year-end?
a. 3,400,000 c. 1,400,000
b. 1,600,000 d. 2,400,000
____ 7. Fragile Company used the direct method to prepare the statement of cash flows. the entity had the following
cash flows during the current year:
Cash receipt from issuance of ordinary shares 4,000,000
Cash receipt from customers 2,000,000
Cash receipt fro dividends on long-term investments 300,000
Cash receipt from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operation expenses 1,200,000
Cash payments for insurance 100,000
Cash payment for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance - beginning 3,500,000

What is the net cash provided by operating activities?

a. 600,000 c. 300,000
b. 400,000 d. 200,000
____ 8. Fragile Company used the direct method to prepare the statement of cash flows. the entity had the following
cash flows during the current year:
Cash receipt from issuance of ordinary shares 4,000,000
Cash receipt from customers 2,000,000
Cash receipt fro dividends on long-term investments 300,000
Cash receipt from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operation expenses 1,200,000
Cash payments for insurance 100,000
Cash payment for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance - beginning 3,500,000

What is the net cash provieded by investing activites?

a. 2,200,000 c. 3,000,000
b. 1,400,000 d. 800,000
____ 9. Fragile Company used the direct method to prepare the statement of cash flows. the entity had the following
cash flows during the current year:
Cash receipt from issuance of ordinary shares 4,000,000
Cash receipt from customers 2,000,000
Cash receipt fro dividends on long-term investments 300,000
Cash receipt from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operation expenses 1,200,000
Cash payments for insurance 100,000
Cash payment for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance - beginning 3,500,000
 What is the net cash provided by financing activities?
a. 4,000,000 c. 3,800,000
b. 6,000,000 d. 6,200,000

____ 10. Fragile Company used the direct method to prepare the statement of cash flows. the entity had the following
cash flows during the current year:
Cash receipt from issuance of ordinary shares 4,000,000
Cash receipt from customers 2,000,000
Cash receipt fro dividends on long-term investments 300,000
Cash receipt from repayment of loan made to another entity 2,200,000
Cash payments for wages and other operation expenses 1,200,000
Cash payments for insurance 100,000
Cash payment for dividends 200,000
Cash payments for taxes 400,000
Cash payment to purchase land 800,000
Cash balance - beginning 3,500,000

What is the cash balance at year-end?

a. 3,500,000 c. 5,500,000
b. 9,300,000 d. 5,800,000