Reference no: EM133033991

Questions -

Q1. Poof Co. had the following transaction: Purchase of land for cash, $90,000; sale of equipment for cash $30,000; issuance of bonds for cash, $100,000; payment of mortgage for cash, $15,000; issue stock dividends, $40,000; purchase treasury stock; $200,000; receive cash dividends, $15,000; scrapped a company car which had a book value of $5,000. What is the net effect of the investing activities?

a. Decrease $60,000

b. Decrease $140,000

c. Decrease $55,000

d. Increase $60,000

e. Increase $55,000

Q2. Issuance of stock dividends would appear in the statement of cash flows as:

a. An increase in cash in the investing activities section

b. A decrease in cash in the investing activities section

c. An increase in cash in the financing activities section

d. A decrease in cash in the financing activities section

e. Does not appear in the statement of cash flows