Reference no: EM132729567
Problem 1: The acquisition of building by issuing preferred stock is
Group of answer choices
(a) a noncash transaction that is not reported in the body of a statement of cash flows
(b) a cash transaction and would be reported in the body of a statement of cash flows
(c) only reported if the statement of cash flows is prepared using the direct method
(d) a noncash transaction reported as an investing activity in the body of a statement of cash flows
Problem 2: During 2015, Can't Spell Industries reported cash provided by operations of $21,050, cash used in investing of $16,900, and cash used in financing of $6,300. In addition, cash spent for fixed assets (capital expenditures) during the period was $11,222. Average current liabilities were $21,567 and average total liabilities were $63,998. $2,000 of dividends were paid.
Based on this information, what was Can't Spell's free cash flow?
Group of answer choices
(a) ($19,748)
(b) $9,828
(c) $7,828
(d) $33,028