Reference no: EM13577765
| Net income |
$ 11,500 |
| Dividends paid to stockholders |
2,800 |
| Cash received from selling land |
3,400 |
| Cash received from new bank loan |
7,400 |
| Cash paid for principal on old bank loan |
1,900 |
| Cash paid to purchase office equipment |
5,600 |
1)The company would report net cash provided by (used in) financing activities of:
A) $(3,750)
B) $7,400
C) $2,700
D) $9,300
2)A corporation prepared its statement of cash flows for the year. The following information is taken from that statement:
| Net cash provided by operating activities |
$16,900 |
| Net cash provided by investing activities |
$5,400 |
| Net cash flows used in financing activities |
$(11,200) |
| Cash balance, end of year |
$15,100 |
What is the cash balance at the beginning of the year?
A) $26,200
B) $11,100
C) $6,800
D) $4,000
3)The net cash flow from operating activities is an inflow of $46,042, the net cash flow from investing activities is an outflow of $21,331, and the net cash flow from financing activities is an outflow of $28,197. If the beginning cash account balance is $12,183, what is the ending cash account balance?
A) $39,176
B) $8,697
C) ($3,486)
D) $51,359
4)Which one of the following events would not require a journal entry on a corporation's books?
A) 2-for-1 stock split
B) $1 per share cash dividend
C) 100% stock dividend
D) 2% stock dividend
5)Under the indirect method, changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities.
A) True
B) False
6)Sea Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital account will increase by
A) $110,000
B) $10,000
C) $130,000
D) $120,000
7)The reporting of financing activities is identical under the indirect and direct methods for the statement of cash flows.
A) True
B) False
8)The purchase of $120,000 of equipment by issuing a note would be reported:
A) as a $120,000 investing inflow, and a $120,000 financing outflow.
B) as a $120,000 investing outflow, and a $120,000 financing inflow.
C) as a $120,000 operating inflow, and a $120,000 financing outflow.
D) in a supplementary schedule.