The Change in Each of Kendall Corporation's Balance Sheet Accounts

question 14

Multiple Choice

The change in each of Kendall Corporation's balance sheet accounts last year follows: Kendall Corporation's income statement for the year was: There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by operating activities on the statement of cash flows is determined using the direct method. Using the direct method, the cost of goods sold adjusted to a cash basis would be:

• A)$180,000
• B)$174,000
• C)$177,000
• D)$186,000

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Definitions:

Coupon Rate

The percent of the face value paid as interest on a bond every year.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if the bond is held until its maturity date, accounting for its current market price, par value, coupon interest rate, and time to maturity.

Coupon Rate

The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the face value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current market price, par value, interest payments, and time to maturity.