7. The declaration and payment of a stock dividend would be reported in which se

Question

7. The declaration and payment of a stock dividend would be reported in which section of the Statement of Cash Flows? Operating Activity Investing Activity Financing Activity Cannot determine based on this information None of the above a. b. c. d. e. Under the indirect method, each of the following is added to net income in computing net cash provided by operating activities except 8. a. depreciation expense b. a loss on the sale of equipment c. a gain on sale of land d. the decrease in accounts receivable during the year e. All of the above are added Flynn Co. reported sales of $250,000. If accounts receivable decreased $10,000 during the year. 9. a. Sales is greater than cash collected b. Cash collected is greater than sales c. Cash collect is the same as sales d. None of the above 10. Refer to the previous question. The amount of cash collected is 11. Use the following to determine the cash flows provided by or used in investing activities . Net income is $145,000, including a gain on the sale of equipment of $5,000 . The equipment cost $23,000, had a book value of $12,000 at the time of sale, and was sold for $17,000 . The company purchased land for $25,000 a. net cash provided, $170,000 b. net cash used, $8,000 c. net cash used, $25,000 d. net cash provided, $25,000 e. net cash provided, $23,000

Explanation / Answer

7 The declaration and payment of a stock dividend would be reported in financing activity of the statement of cash flows since it is paid due to financing done by the company 8 Under the indirect method, a gain on sale of land is deducted to net income in computing net cash provided by operating activities Hence, the correct answer is Option C 9 If accounts receivable has decreased is means cash collected is greater than sales and hence it is added to operating activity in cash flow The correct answer is option B 10 Cash collected would be (250000-10000) = $ 240000 11 Proceeds from equipment 17000 Purchased land -25000 Net cash used -8000 The correct answer is Option B

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