1a.) Accounts receivable arising from sales to customers amounted to $40,000 and

Question

1a.) Accounts receivable arising from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$111,000.

$120,000.

$151,000.

$129,000.

1b.) Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

the cash flows from operating activities section

a separate schedule

the cash flows from financing activities section

the cash flows from investing activities section

1c.) The statement of cash flows reports

total changes in stockholders' equity

cash flows from operating activities

changes in retained earnings

total assets

1d.) On the statement of cash flows, the cash flows from financing activities section would include all of the following except

payments for purchase of treasury stock

payments for dividends

payments of interest on bonds payable

receipts from the sale of bonds payable

1e.) A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under

operating activities

financing activities

investing activities

noncash investing and financing activities

$111,000.

$120,000.

Explanation / Answer

1a) 40000-31000 = 9000

120000+9000= $129000 is the answer

1b) the cash flows from operating activities section

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