In Order to Prepare the Statement of Cash Flows for Rag

question 153

Multiple Choice

In order to prepare the statement of cash flows for Rag Dolls Corporation for 2014, the accountant has compiled the following data regarding cash flows:
$\begin{array}{llr} \text {Cash paid to acquire equity securities. } &\$370,000\\ \text { Proceeds from sale of equity securities } &17,500\\ \text { Proceeds from issuance of ordinary shares} &280,000\\ \text {Proceeds from issuance of bonds payable. } &55,000\\ \text { Payments to settle short-term debt} &32,500\\ \text { Interest and dividends received } &10,000\\ \text { Cash receipts from customers} &?\\ \text { Dividends paid } &130,000\\ \text { Cash paid to suppliers and employees } &1,030,000\\\text { Interest paid }&70,000\\ \text { Income taxes paid } &25,000\\ \text { Cash and cash equivalents,1January, 2014 } &43,000\\\text { Cash and cash equivalents, } 31 \text { December } 2014 &58,000\end{array}$

Using the above information, indicate the best answer for each question in the space provided. (Assume interest and dividends received and paid are classified as operating activities)

-In the 2014 statement of cash flows for Rag Dolls Corporation, the amount of Cash receipts from customers is:

• A) $1,310,000.
• B) $1,103,000.
• C) $1,233,000.
• D) $1,293,000.
• Lester Corporation's statement of cash flows for 2014 shows the following investing activities:
• Proceeds from sale of equity securities $ 160,000
• Purchase of land (250,000)
• Proceeds from sale of land 125,000
• Net cash from investing activities $ 15,000
• Lester's income statement for 2014 includes the following:
• Loss on sale of equity securities $47,000
• Gain on disposal of land 65,000

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