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

Understand the implications of workplace systems and rules, such as those imposed by unions, on performance management systems.

Grasp the fundamentals of the Job Characteristics Model and its predictive capabilities regarding job satisfaction and motivation.

Comprehend strategies for enhancing job motivation and performance, including job enrichment and the establishment of clear goals.

Understand the application and calculation of the Motivating Potential Score in job design.

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Definitions:

Indirect Labor

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.

Direct Labor-Hours

The total time workers spend directly manufacturing a product.

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a given period.

Catering Supplies

Items and ingredients needed for preparing and serving food in a catering setup.