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