Final Exam Review Online Key 1 B 2 1 40 000 8 000 4 8 000 2 40 000 x 2 4 20 000 3 40 000 8 000 10 000 hours 3 20 per hour x 2 200 hours 7 040 3 4 A 5 6 C 7 B 8 A 9 D 10 C 11 A 12 D 13 A 14 Authorized stock is the total number of shares available to sell stated in the company s articles of incorporation Issued stock is the number of shares that have been sold to investors A company usually does not issue all its authorized stock Outstanding stock is the number of shares held by investors Issued and outstanding are the same amounts as long as the corporation has not repurchased any of its shares Repurchased shares called treasury stock are included as part of shares issued but excluded from shares outstanding 15 TRUE 16 FALSE 17 18 B 19 B 20 B 21 B 22 A 23 A 24 D 25 26 A 27 B 28 29 B Communication Accessories Statement of Cash Flows For the Year Ended December 31 2012 Cash Flows from Operating Activities Net income Adjustments for noncash effects Depreciation expense Gain on sale of land Decrease in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in accounts payable Decrease in interest payable Increase in income tax payable 212 000 38 000 4 000 12 000 17 000 2 000 18 000 1 000 2 000 Net cash flows from operating activities 256 000 Net cash flows from investing activities 71 000 95 000 10 000 34 000 200 000 90 000 5 000 285 000 100 000 362 000 262 000 Cash Flows from Investing Activities Purchase investment in stock Purchase of equipment Sale of land Cash Flows from Financing Activities Payment of cash dividends Pay off bond payable Issue common stock Net increase decrease in cash Cash at the beginning of the period Cash at the end of the period Net cash flows from financing activities
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