ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 42

The net income reported on the income statement for the current year
was $440,000. Depreciation was $62,000. Accounts receivable and
inventories decreased by $20,000 and $32,000, respectively. Prepaid
expenses and accounts payable increased, respectively, by $2,000 and
$16,000. How much cash was provided by operating activities?
Question 16
The statement of cash flows will not provide insight into
Question 17
Laser Performance Inc. has the following information available
(amount in thousands).
Net Income

$30,000

Average Total Liabilities

80,000

Average Current Liabilities

36,000

Cash Provided by Operations
Cash Sales
Capital Expenditures
Dividends Paid

48,000
130,000
22,000
6,000

What is the current cash debt coverage?
Question 18
Authentic Exposure Company had the following transactions that
took place during the year:
I.

Paid amount owing to suppliers $2,750.

II. Purchased new equipment for $5,000 by signing a long-term note
payable.
III. Purchased a patent and paid $15,000 cash for the asset.