Reference no: EM133039592

Question - Q1. Washington Co. sold land for $75,000 cash, bought equipment for $15,000 cash, bought a building for $150,000 with a mortgage, and issued treasury stock for cash at a cost of $50,000. What is the net effect in the investing section on the statement of cash flows?

a. An increase of $60,000

b. A decrease of $260,000

c. A decrease of $110,000

d. A decrease of $60,000

e. None of these are correct

Q2. A receipt of cash dividends would appear in the statement of cash flows as:

a. An increase in cash in the operating activities section

b. A decrease in cash in the operating activities section

c. An increase in cash in the investing activities section

d. A decrease in cash in the investing activities section

e. An increase in cash in the financing activities section

f. A decrease in cash in the financing activities section