ACC 421 Experience Tradition/uophelp.com ACC 421 Experience Tradition/uophelp.com | Page 31

ACC 421 Week 4 CPA Practice 1. What was New England's cash balance at the end of the year? 2. 2-In Trey's December 31, 2005 Balance Sheet, what amount should be reported as total current assets? 3. Noncash financing and investing activity reported in a separate schedule. 4. 4-Which of the following transactions is included in the operating activities section of a cash flow statement prepared using the indirect method? 5. 5-Mirr, Inc. was incorporated on January 1, year 1, with proceeds from the issuance of $750,000 in stock and borrowed funds of $110,000. During the first year of operations, revenues from sales and consulting amounted to $82,000, and operating costs and expenses totaled $64,000. On December 15, Mirr declared a $3,000 cash dividend, payable to stockholders on January 15, year 2. No additional activities affected owners’ equity in year 1. Mirr’s liabilities increased to $120,000 by December 31, year 1. On Mirr’s December 31, year 1 balance sheet, total assets should be reported at 6. 6-Jackson Company classifies trading securities as an operating activity based on their nature and purpose. In a statement of cash flows in which the operating activities section is prepared under the indirect method, the realized gain on an investment in securities held for trading should be presented as 7. 7-In a statement of cash flows, which of the following would increase reported cash flows from operating activities using the direct method? 8. 8-In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from 9. 9In its June 30, 2004, balance sheet, what amount should Gold report as current assets?