12. The FASB addressed simultaneous financing and investing activities by requir

Question

12. The FASB addressed simultaneous financing and investing activities by requiring that they be:
a) ignored.
b) reported on the retained earnings statement.
c) reported separately on a supplemental schedule to the statement of cash flows.
d) reported separately on the income statement.


13. Madisen Company reported net income for Year 4 of $200,000. The company reported depreciation expense of $35,000 and amortization of patents of $10,000. The company also reported a loss on the sale of equipment of $5,000. Based only on this information, the company would report net cash flow from operations of:
a) $235,000.
b) $240,000.
c) $245,000.
d) $250,000.


14. A decrease in accounts receivable of $8,000 for the year:
a) decreases cash flow from operations by $8,000.
b) decreases cash flow from operations by $16,000.
c) increases cash flow from operations by $8,000.
d) increases cash flow from operations by $16,000.

Explanation / Answer

12. c) 13. d) 200,000+35,000+10,000+5,000=250,000 14. a)

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