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Summer 2014 Exam 3 ANSWERS Essay

Satisfactory Essays

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Use the following information for the next two questions.
Napier Co. provided the following information on selected transactions during 2013:
Purchase of land by issuing bonds $500,000
Proceeds from issuing bonds 1,000,000
Purchases of inventory 1,900,000
Purchases of treasury stock 300,000
Loans made to affiliated corporations 700,000
Dividends paid to preferred stockholders 200,000
Proceeds from issuing preferred stock 800,000
Proceeds from sale of equipment 100,000

1. The net cash provided (used) by investing activities during 2013 is
a. $100,000.
b. $(600,000).
c. $(1,100,000).
d. $(2,500,000).
e. None of the above.

2. The net cash provided by financing activities during 2013 is
a. $1,100,000.
b. $1,300,000.
c. …show more content…

$2,040,000.
b. $90,000.
c. $(330,000).
d. $240,000.
e. None of the above.

10. A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the
a. total combined revenues of all segments reporting profits.
b. total export and foreign sales.
c. combined net income of all segments reporting profits.
d. total revenues of all the enterprise's segments.
e. None of the above.

11. The MD&A section of a company's annual report is to cover the following three items:
a. income statement, balance sheet, and statement of owners' equity.
b. income statement, balance sheet, and statement of cash flows.
c. liquidity, capital resources, and results of operations.
d. changes in the stock price, mergers, and acquisitions.
e. None of the above.

Use the following information for the following five questions.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2013 and 2012 are provided below.

BALANCE SHEETS 12/31/13 12/31/12
Cash $306,000 $ 144,000
Accounts receivable 270,000 162,000
Merchandise

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