31. A cash purchase of land would appear in which of the following sections of the statement of cash flows?
A. Cash outflow from financing activities.
B. Cash inflow and cash outflow in a separate schedule of noncash investing and financing activities.
C. Cash outflow from investing activities.
D. Cash inflow from operating activities.
32. Valdez Co. sold land that had cost $48,000 for $60,000 cash.
A. The $12,000 gain would be subtracted from net income in the operating activities section using the indirect method.
B. $48,000 would appear as a cash inflow from investing activities and $12,000 would be added in the operating activities section using the indirect method.
C. $60,000 would appear as a cash inflow from investing activities.
D. The $12,000 gain would be subtracted from net income in the operating activities section using the indirect method and $60,000 would appear as a cash inflow from investing activities.
33. The amount of cash flow from financing activities on the December 31, 2016 statement of cash flows would be:
A. $0.
B. $80,000 inflow.
C. $83,000 inflow.
D. ($87,200) outflow.
34. The amount of interest expense and cash outflow shown on the December 31, 2016 financial statements would be:
35. The amount of interest expense and total cash outflows related to the note shown on the December 31, 2017 financial statements would be:
36. What is the net cash flow from financing activities?
A. $22,000 inflow
B. $25,000 inflow
C. $25,000 outflow
D. $47,000 outflow
37. What is the net cash flow from investing activities?
A. $62,000 outflow
B. $62,000 inflow
C. $67,500 outflow
D. $73,000 outflow
38. What effect does the following journal entry have on the amount of cash generated by operating activities?
39. A mortgage issued in exchange for a building would be reported on the statement of cash flows in the
A. financing activity section.
B. investing activity section.
C. operating activity section.
D. noncash financing and investing section.
40. Which of the following would
not
be a cash flow from financing activities?
A. Borrowing on a long-term note payable
B. Repayment of principal on bonds payable
C. Payment of interest on bonds payable
D. Payment of a cash dividend