Reference no: EM131784803
Question - Indigo Corporation is preparing its Statement of Cash Flows for the year ended December 31 using the indirect method and has developed the following data:
Increase in deferred tax liabilities 23,000
Decrease in accounts payable (58,000)
Increase in accrued interest payable 43,000
Interest paid 31,000
Proceeds from issuance of long-term debt 600,000
Increase in capital lease payable 67,000
Payments on long-term debt (49,000)
Purchase of bonds payable 90,000
Based on the information developed above, Indigo would report net cash provided from financing activities of:
A. 551,000
B. 587,000
C. 618,000
D. 677,000
Question - Twin House Inc. reported net income of $753,000 for the current year-ended December 31. Twin House's financial statements reflected the following information:
Depreciation expense $150,000
Gain on sale of trading securities 6,000
Goodwill impairment 75,000
Decrease in accounts receivable 48,000
Increase in inventory 33,000
Decrease in trading securities 50,000
Increase in available-for-sale securities 62,000
Increase in accounts payable 70,000
Decrease in taxes payable 15,000
Dividend paid 200,000
Dividend received 27,000
What should Twin House report as net cash provided by operating activities on the statement of cash flows, assuming that Twin House classifies the proceeds from the sale of the trading securities as an operating cash outflow?
A. $1,119,000
B. $1,092,000
C. $1,030,000
D. $892,000