Changes in the Balance Sheet Accounts at June 30, 2014

question 91

Multiple Choice

Changes in the balance sheet accounts at June 30, 2014 and 2015 for the Poker Company are presented below:
$\begin{array}{lr}\text { Assets } & \begin{array}{r}\text { Increase } \\\text { (Decrease }\end{array} \\\text { Cash } & \$ 80,000 \\\text { Accounts receivable } & 200,000 \\\text { Lnventory } & 300,000 \\\text { Long-term investments } & 200,000 \\\text { Equipment } & (200,000 \\\text { Accumulated depreciation } & (60,000) \\\\\text { Liabilities and Stockholders' Equity }\\\text {Accounts payable }&\$(40,000) \\\text {Dividends payable}&400,000\\\text {Notes payable-Current }&(200,000) \\\text {Notes payable-Long-term }&400,000\\\text {Common stock, \( \$ 1.00 \) par }&300,000\\\text {Additional paid-in capital }&100,000\\\text {Retained eamings }&80,000\\\end{array}$
Additional Information for 2015:
Net income was $480,000 and dividends of $400,000 were declared.
Common stock was issued for cash.
A Long-term investment was sold for $160,000.
A new Long-term investment was acquired for $360,000.
Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.
-The cash flow from financing activities for 2015 is a

• A)$200,000 outflow.
• B)$400,000 inflow.
• C)$600,000 inflow.
• D)$700,000 inflow.

Comprehend how self-correction mechanisms work in adjusting an economy towards its potential output.

Differentiate between passive and active approaches to economic policy.

Identify the effects of policy stances (active and passive) on real GDP and price levels in the short and long run.

Recognize the role of wages (money and real) in the self-correction process.

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Definitions:

Friendship

A relationship between two people based on mutual affection, trust, support, and understanding.

Perspectives

Particular attitudes towards or ways of regarding something; viewpoints or standpoints.

Semantic Knowledge

A kind of declarative knowledge that includes factual information (“There are 50 states in the U.S.”), rules (“Ride a bicycle on the right-hand side of the street”), and concepts (“Green is a color”).

Episodic

Pertaining to or consisting of separate events or incidents, often used to describe memory or narrative structure.