McGee Company gathered the following data to prepare its 2024 statement of cash flows:   Net income $70,000 Depreciation expense 10,000 Accounts receivable decrease 5,000 Wages payable increase 6,000 Amortization of patent 2,000 Dividends paid 1,000 Income tax payable decrease 4,000 Based only on the above data, the net cash inflow from operating activities during 2024 was

Which of the following statements is not correct? 

If the current ratio is 2 to 1, the receipt of a payment for an account receivable will

Which of the following is a reason that a corporation would want to issue bonds instead of stock?

In order to calculate the cost of a long-term asset that is financed with long-term debt, present values concepts would be used.

Coleman Company has provided the following information: beginning inventory, $100,000; cost of goods sold, $450,000; and ending inventory, $80,000. How much were Coleman’s inventory purchases?

Professor Molloy plans to purchase a custom Maserati in five years in order to stave off a midlife crisis.  He would like to have the sum of $200,000 in his Maserati purchase fund in exactly five years.  Using either the factors below or a financial calculator, determine the amount Professor Molloy would have to invest today in order to have his Maserati purchase fund grow to exactly $200,000 in five years if he can earn 8% annual interest rate, compounded semi-annually. Select the answer that is closest to (within $250 above or below) what you calculated.  If an answer is more than $250 away from what you calculated, you should consider it incorrect. Present value of $1  – number of periods 5, interest rate 8% = 0.82193 Present value of $1 – number of periods 10, interest rate 4% = 0.67556 Present value of an annuity $1  – number of periods 5, interest rate 8% = 0.46319 Present value of an annuity of $1 – number of periods 10, interest rate 4% = 0.60000  

On December 31, 2023, Listach Inc. sold a used industrial crane for $600,000 cash. The original cost of the crane was $5.0 million and its accumulated depreciation equaled $4.2 million on December 31, 2023. What is the gain or loss from the December 31, 2023 equipment sale?

On January 1, 2021, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 3-year life and a $4,000 residual value. Wasson estimates that the vehicle will be driven 72,000 miles. What is the vehicle’s depreciation expense for the year ended December 31, 2023 assuming Wasson uses the units-of-production depreciation method and the vehicle was driven 35,000 miles during 2021, 25,000 miles during 2022 and 14,000 miles in 2023?

Lanier Company recently purchased a truck. The price negotiated with the dealer was $40,000. Lanier also paid sales tax of $2,000 on the purchase, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000. At what amount should the truck be recorded on the balance sheet?