Chapter 19 & 20 Homework Problems1. Match the following classifications on the statement of cash flows with the events listed below. Unless otherwise indicated, assume payments made or received are for cash.A)OperatingB)FinancingC)InvestingD)Noncash Financing and Investing EventE)Not on cash flow statement.______ 1. Paid an account payable.______ 2. Paid employees salaries.______ 3. Purchased Trading Securities______ 4. Purchased treasury stock.______ 5. Sold Building for cash.______ 6. Paid a dividend.______ 7. Paid a short-term Trade Note Payable.______ 8. Purchased Land by issuing common stock to owner.______ 9. Borrowed money by signing a 18-month note payable.______ 10. Sold merchandise to a customer for cash. Answer: 1. A 2. A 3. C 4. C 5. C 6. B 7. A 8. D 9. B 10. A2. Match the following classifications on the statement of cash flows with the events listed below. Unless otherwise indicated, assume payments made or received are for cash.A) OperatingB) FinancingC) InvestingD) Noncash Financing and Investing Event E) Not on cash flow statement.______ 1. Collected an accounts receivable.______ 2. Sold treasury stock.______ 3. Purchased Available-for-Sale Securities______ 4. Paid utilities.______ 5. Purchased Building for cash.______ 6. Paid a cash dividend.______ 7. Purchased Land by issuing a long-term note payable.______ 8. Distributed a stock dividend______ 9. Issued Preferred Stock for cash______ 10. Borrowed money after signing a 5 year note payable Answer: 1. A 2. B 3. I 4. A 5. C 6. B 7. D 8. E 9. B 10. BChapter 19 & 20 Homework Problems3. The retained earnings account began the year with a balance of $700,000 which was increasedwith net income of $250,000. If the ending balance of retained earnings was $800,000 and all dividends declared were paid in cash, how much was paid for dividends during the year? $150,000 4. How is a decrease in Accounts Receivable shown in the statement of cash flows under the indirect method? Added to net income in operating activities5. How is an increase in Salaries Payable shown in the statement of cash flows under the indirect method? Added to net income in operating activities 6. The beginning balance in accounts receivable is $ 8,000. Sales during the period equaled $ 15,000. The ending balance in accounts receivable equals $ 2,000. How much cash was received from customers? $ 21,000 7. Janson Company’s Interest Payable account decreased by $10,000 during the year. If Janson reported Interest Expense of $35,000 on their income statement, how much cash did the company pay for interest? $45,0008. What is the formula for the operating activities section of the statement of cash flows using the indirect method? NI +/- adjustments (+depreciation expense, +decreases in current assets, +increases in current liabilities, -increases in current assets, -decreases in current liabilities)9. Ruly Corp., had net income of $20,000 for the year. Ruly showed depreciation expense of $22,000, an increase in Prepaid Expenses of $30,000, and a decrease in Accounts Payable of $12,000. What was Ruly’s net cash flows from operating activities? $010. Williston Partners, LLC, had a $7,000 decrease in their Prepaid Insurance account for the year. If Insurance Expense was $33,000, how much cash did Williston pay for insurance? $26,000Chapter 19 & 20 Homework ProblemsSelected year-end data of Pioneer Company (in thousands) for 2010 and 2009 is as follows:2010 2009Current Assets $345 $365Long-Term Assets 790 720Current Liabilities 280 310Long-Term Liabilities 410 440Owners' Equity 445 335Net Sales 830 790Gross Margin 375 355Interest Expense 80 78Net Income 120 10511. The current ratio at the end of 2010 was: 1.23 12. The return on assets for 2010 was: 18% 13. The return on owners' equity for 2010 was: 30.8% 14. The gross margin percentage for 2010 was: 45.2% 15. The return on sales for 2010 was: 14.5% 16. Debt to Equity ratio for 2010 was: 1.5517. Vertical analysis of gross margin for 2010 was: 45.2%18. Horizontal analysis of net income for 2010 was: 14.3%19. Times interest earned ratio for 2010 was: 2.520. The percentage change for long-term assets from 2009 to 2010 was: