Question 1
During the quarter, Menon N Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $30 of cash to employees and other creditors, and recorded a $5 loss on sale of equipment. There were no other cash flows related to operating activities.
What was Menon N’s Cash Flow from Operations during the quarter?
- $25
- $5
- $10
- $15
- $20
Question 2
Saxena Ltd. had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $400. What was Saxena’s EBITDA?
- $1000
- $250
- $400
- $500
- $600
Question 3
Mangini Co.’s Balance Sheet had the following line item:
12/31/2012 12/31/2011
Accounts Receivable, net of allowances of $500 and $450, respectively $9,200 $8,400
What percentage of gross accounts receivable does Mangini expect to be uncollectable as of 12/31/2012?
- 5.15%
- 4.43%
- 5.08%
- 5.36%
- 5.01%
Question 4
Odaine Inc.’s footnotes had the following line item:
12/31/2012 12/31/2011
Allowance for Doubtful Accounts $800 $650
Odaine also disclosed that Bad Debt Expense was $1000 in 2012 and $890 in 2011. There were no recoveries of previously written off accounts in either year. What were total write offs of uncollectable accounts for the year ended 12/31/2012?
- $800
- $150
- $110
- $850
- $1,150
Question 5
JannaChan Ltd.’s Statement of Cash Flows had the following line items:
2012 2011
Bad Debt Expense, net $1,500 $350
Increase in Accts Receivable $(6,600) $(2,900)
JannaChan reported Sales of $150,000 during the year ended 12/31/2012. There were no write offs or recoveries during 2012. How much cash did JannaChan collect from customers during the year ended 12/31/2012?
- $143,400
- $156,600
- $150,000
- $148,500
- $141,900
Question 6
A retail company, Telmo Mart, had the following line item on its Balance Sheet:
12/31/2012 12/31/2011
Inventory $5,500 $5,100
Telmo Mart’s Income Statement had the following line item:
2012 2011
Cost of Goods Sold $91,000 $87,000
How much inventory did Telmo Mart purchase during the year ended 12/31/2012?
- $90,600
- $86,600
- $91,400
- $91,000
- $87,400
Question 7
Nguyen Co. incurred the following costs during the quarter:
Raw materials used in production $132,000
Marketing materials used by sales staff $114,000
Wages of factory workers $191,000
Salaries of sales staff $391,000
Depreciation on factory and production equipment $152,000
Depreciation on headquarters building $132,000
Manufacturing overhead $172,000
How much of these costs would have been recorded in Nguyen’s Work in Process Inventory account during the quarter?
- $779,000
- $495,000
- $1,252,000
- $647,000
- $488,000
Question 8
A manufacturing company, Kutty Industries Ltd., had the following line items in a footnote:
12/31/2012 12/31/2011
Raw Materials $150 $140
Work in Process $215 $200
Finished Goods $250 $240
$615 $580
LIFO Reserve $(100) $(60)
Total Inventory $515 $520
Kutty Industries’ Income Statement had the following line item:
2012 2011
Cost of Goods Sold $1,850 $1,725
What would Kutty Industries’s Cost of Goods Sold had been if they had used the FIFO inventory method for the year ended 12/31/2012?
- $1,750
- $1,950
- $1,810
- $1,890
- $1,850
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