91.Cash dividends paid on capital stock would be reported in the statement of cash flows in
a.the cash flows from financing activities section
b.the cash flows from investing activities section
c.a separate schedule
d.the cash flows from operating activities section
92.Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning ofthe year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year is
a. $50,000
b. $40,000
c. $55,000
d. $35,000
93.On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be
a.added to net income in converting the net income reported on the income statement to cash flows fromoperating activities
b.deducted from net income in converting the net income reported on the income statement to cash flows fromoperating activities
c.added to dividends declared in converting the dividends declared to the cash flows from financing activitiesrelated to dividends
d.deducted from dividends declared in converting the dividends declared to the cash flows from financingactivities related to dividends
94.A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported onthe statement of cash flows in
a.a separate schedule
b.the cash flows from financing activities section
c.the cash flows from investing activities section
d.the cash flows from operating activities section
95.Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement asother expense. On the statement of cash flows, what amount should be reported as an investing activity from thesale of land?
a. $50,000
b. $71,000
c. $121,000
d. $21,000
96.The current period statement of cash flows includes the following:
Cash balance at the beginning of the period
|
$310,000
|
Net cash flow from operating activities
|
185,000
|
Net cash flow used for investing activities
|
43,000
|
Net cash flow used for financing activities
|
97,000
|
The cash balance at the end of the period isa. $45,000
|
|
b. $635,000
|
|
c. $355,000
|
|
d. $125,000
|
|
97.Which of the following should be deducted from net income in calculating net cash flow from operating activitiesusing the indirect method?
a.a decrease in inventory
b.a decrease in accounts payable
c.preferred dividends declared and paid
d.a decrease in accounts receivable
98.Which of the following should be added to net income in calculating net cash flow from operating activities usingthe indirect method?
a.depreciation expense
b.an increase in inventory
c.a gain on the sale of equipment
d.dividends declared and paid
99.The net income reported on the income statement for the current year was $250,000. Depreciation recorded onfixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of currentasset and current liability accounts at the end and at the beginning of the year are as follows:
|
End
|
Beginning
|
Cash
|
$ 50,000
|
$ 60,000
|
Accounts receivable
|
112,000
|
108,000
|
Inventories
|
105,000
|
93,000
|
Prepaid expenses
|
4,500
|
6,500
|
Accounts payable (merchandise creditors)
|
75,000
|
89,000
|
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by theindirect method?
a. $271,000
b. $279,000
c. $327,000
d. $256,000
100.The following information is available from the current period financial statements:
Net income
|
$165,000
|
Depreciation expense
|
28,000
|
Increase in accounts receivable
|
16,000
|
Decrease in accounts payable
|
21,000
|
The net cash flow from operating activities using the indirect method is
a. $230,000
|
|
b. $188,000
|
|
c. $198,000
|
|
d. $156,000
|
|