ACC 110 Lecture : Tutorial 7 Solution.pdf
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1. Fill in the table by indicating if it is an increasing (+) or decreasing (-) transaction. Also indicate if it is an operating (O), investing (I), or financing (F), activity. + or - O, I, or F
Cash payment of dividends | 2,000 | ||
Cash payment for inventory | 120,650 | ||
Cash payment for expenses | 61,000 | ||
Cash payment for wages | 45,250 | ||
Cash payment for interest expense | 925 | ||
Cash payment for purchase of equipment | 25,350 | ||
Cash payment for repayment of debt | 14,000 | ||
Cash collection of accounts receivable | 340,500 | ||
Cash collection of interest revenue | 12,500 | ||
Cash collection of dividend revenue | 10,500 | ||
Cash proceeds from sale of equipment | 12,000 | ||
Cash proceeds from sale of common stock | 55,000 |
2. Using the information in the table from question 1, complete the following statement of cash flows using the direct method. List each transaction and amount under the appropriate section. Be sure to indicate if it is increasing or decreasing (+ or -). You may not need to use all of the lines.
Cash from Operating Activity | Amount |
Net cash __ (provided or used) by operating activity | |
Cash from Investing activity | Amount |
Net cash _____ (provided or used) by investing activity | |
Cash from Financing Activity | Amount |
Net cash __ (provided or used) by financing activity |
Net change in cash during period
Cash at beginning of period 27,000
Cash at end of period
1For the revenue process which of the following document sequences is correct?
Customer order, sales order, packing slip, bill of lading |
Sales order, packing slip, customer order, bill of lading |
Customer order, bill or lading, sales order, packing slip |
Customer order, packing slip, sales order, bill of lading |
2
During the current year, ending inventory was higher under the LIFO method than under the FIFO method. Which of the following statements about price changes is true?
Prices were unchanged. |
Prices were increasing. |
Unable to determine from the information given |
Prices were decreasing. |
3
In times of rising prices, ______ generally result(s) in the ______ cost of goods sold.
FIFO, higher |
FIFO, lower |
LIFO, lower |
LIFO and FIFO, same |