USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 31 – 33: Walt Disney Corp. prepares its Statement of Cash Flows using the indirect method and had the following statements prepared as of December 31, 2025: Additional Data for 2025: Net Income = $41,000 Depreciation of plant assets = $12,700 Sold land for $33,000 cash Paid cash dividends of $15,000 Purchased equipment for $26,500 cash Purchased equipment for $60,000 by issuing a long-term note payable Paid $40,000 long-term note payable by issuing common stock   QUESTION 31 –> What amount will Walt Disney report as net cash provided (used) by Operating Activities?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 28 – 30: Viktor’s Airport Concession Co. prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2024, Navorski reports the following: Sales revenue                                                                         $3,210,000 Cost of goods sold                                                                  $1,575,000 Gross profit                                                                             $1,635,000 Operating expenses (including $5,000 in depr. exp.)          .    $95,000 Net income                                                                              $1,540,000 In addition, the following balance sheet accounts changed during 2024: Decrease in accounts receivable  $915,000 Increase in prepaid rent                 $16,700 Increase in inventory                      $72,000 Increase in accounts payable        $108,000 Decrease in salaries payable         $8,000 QUESTION 28 –> What is the amount of cash collections from customers reported by Navorski for the year ended December 31, 2024?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 22 –24: Apollo Corp. began operations on January 1, 2023, using the FIFO method of pricing inventory. At the beginning of 2026, Apollo is contemplating a change in inventory methods. The following information is available for the years 2023-2025: QUESTION 22 –> The adjusting journal entry needed to record a change from the FIFO method to the average-cost method at the beginning of 2026, ignoring tax considerations, would include:

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 25 –27: Miller Corp. hired unqualified accounting staff and discovered many errors. Indicate what adjusting entries are necessary to correct these errors, assuming the 2023 books have already been closed. QUESTION 26 –> On January 1, 2023, Miller paid $14,500 cash for a 2-year rental agreement. When making the payment, the accounting staff debited Rent Expense for the full amount. What adjusting journal entry will correct this error in 2024?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 28 – 30: Viktor’s Airport Concession Co. prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2024, Navorski reports the following: Sales revenue                                                                         $3,210,000 Cost of goods sold                                                                  $1,575,000 Gross profit                                                                             $1,635,000 Operating expenses (including $5,000 in depr. exp.)          .    $95,000 Net income                                                                              $1,540,000 In addition, the following balance sheet accounts changed during 2024: Decrease in accounts receivable  $915,000 Increase in prepaid rent                 $16,700 Increase in inventory                      $72,000 Increase in accounts payable        $108,000 Decrease in salaries payable         $8,000 QUESTION 29 –> What is the amount of cash payments to suppliers reported by Navorski for the year ended December 31, 2024?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 16 – 18: North Pole Real Estate Corp. signs an agreement on January 1, 2025, to lease a retail location to The Polar Expresso, a Christmas-themed Cafe. The following information relates to this agreement. The agreement requires equal annual rental payments of $28,335 to the lessor, beginning on January 1, 2025. The term of the non-cancelable lease is 3 years with no bargain purchase or renewal options. The building has an estimated economic life of 5 years. It is not a specialized asset. The fair value of the asset on January 1, 2025, is $88,000. The building will revert back to the lessor at the end of the lease term, at which time the building is expected to have a residual value of $7,000, none of which is guaranteed. The Polar Expresso uses the straight-line depreciation method for all buildings. The lessor’s implicit rate is 4% and is unknown to the lessee. The lessee’s incremental borrowing rate is 5%. 4%, 3 periods – PVF-AD 3, 4% = 2.88609; PVF of $1 3, 4% = 0.88900. 5%, 3 periods – PVF-AD 3, 5% = 2.85941; PVF of $1 3, 5% = 0.86384. QUESTION 16 –> The Polar Expresso will classify this as a Finance Lease. Perform all five lease classification tests and indicate which one(s) determine that this is a Finance lease rather than an Operating lease. Transfer of ownership Bargain purchase Lease Term / Economic Life Present value Alternate Use / Specialized asset

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 25 –27: Miller Corp. hired unqualified accounting staff and discovered many errors. Indicate what adjusting entries are necessary to correct these errors, assuming the 2023 books have already been closed. QUESTION 25 –> At the end of 2023, $4,200 of Interest Revenue should have been accrued, but the staff forgot. In early January 2024, when the $4,200 in cash was received, Interest Revenue was credited. What adjusting journal entry will correct this error in 2024?

Equipment was purchased at the beginning of 2022 for $850,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through the end of 2024. At the beginning of 2025, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $62,500. The amount of depreciation expense for 2025, reflecting these changes in estimates, is:

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