11. On September 10, 2016, Howard Corporation received a check for $250 for dividends on Truxell Corporation stock that Howard holds as an investment. Show the effects of this transaction on Howard's income statement and statement of cash flows.
12. On December 31, 2016, Howard Corporation recorded the expiration of $4,000 of insurance that was previously recorded as an asset. Show the effects of this transaction on Howard's income statement and statement of cash flows.
13. Which section of a statement of cash flows resembles an income statement?
14. Give an example of a noncash financing and investing activity.
15. Which method of preparing the operating activities section of a cash flow statement is recommended by the Financial Accounting Standards Board?
16. Which method do most companies use in preparing the operating activities section of the cash flow statement?
17. What is the purpose of the statement of cash flows?
18. List the three categories of cash inflows and outflows shown on the statement of cash flows.
19. What is the major advantage of using the direct method of preparing the operating activities section of the statement of cash flows?
20. What is the major advantage of using the indirect method of preparing the operating activities section of the statement of cash flows?