111.In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
a.added to net income
b.deducted from net income
c.ignored because it does not affect cash
d.reported supplementally as a noncash investing and financing activity
112.Net income for the year was $45,500. Accounts receivable increased $5,500, and account payable increased by$11,200. Under the indirect method, the cash flow from operations is
a. $51,200
b. $45,500
c. $62,200
d. $28,800
113.Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by$7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cashprovided by operating activities for the year is
a. $53,000
b. $47,000
c. $33,000
d. $37,000
114.On the statement of cash flows, the cash flows from financing activities section would include all of the followingexcept
a.receipts from the sale of bonds payable
b.payments for dividends
c.payments for purchase of treasury stock
d.payments of interest on bonds payable
115.Under GAAP, cash receipts from interest and dividends are classified as
a.financing activities
b.operating activities.
c.investing activities.
d.either financing or investing activities.
116.On the statement of cash flows, the cash flows from operating activities section would include
a.receipts from the issuance of capital stock
b.payment for interest on short-term notes payable
c.payments for the purchase of investments
d.payments for cash dividends
117.Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss onthe sale was reported on the income statement. On the statement of cash flows, what amount should Firefly reportas an investing activity from the sale of the land?
a. $225,000
b. $275,000
c. $50,000
d. $500,000
118.The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 atthe beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning andend of the year, respectively. Using the direct method of reporting cash flows from operating activities, cashpayments for merchandise total
a. $49,000
b. $47,000
c. $51,000
d. $53,000
119.Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of theyear, respectively. Cash received from customers to be reported on the statement of cash flows using the directmethod is
a. $700,000
b. $600,000
c. $580,000
d. $620,000
120.Cash collections from customers were
a. $56,000
b. $52,000
c. $60,000
d. $45,000