6.On a statement of cash flows, the net increase in cash was$24,000. Cash provided from operations was $30,000. If the net cashoutflow from investing activities was $7,000, then what was the netcash flow from financing activities?
A. net inflow of $1,000
B. net outflow of $1,000
C. net inflow of $13,000
D. net outflow of $13,000
7.Using the following information for Stewart Auto, Inc.,calculate the net cash flow from operating activities using theindirect method.
Net income $150,000
Depreciation expense 10,000
Increase in accounts receivable 4,000
Decrease in inventory 5,000
Increase in accounts payable 8,000
Loss on sale of equipment 7,000
The net cash provided by operating activities is:
A. $142,000.
B. $144,000.
C. $160,000.
D. $176,000.
8. Which of the following statements is TRUE regarding theindirect method of preparing a statement of cash flows?
A. A decrease in inventory is subtracted from net income.
B. A loss on the sale of an investment is added to netincome.
C. Depreciation expense is subtracted from net income.
D. An increase in wages payable is subtracted from netincome.
9.Which of the following statements is TRUE regarding the directmethod of preparing a statement of cash flows?
A. Depreciation expense is added as a reconciling item.
B. It is easier and less costly to prepare than the indirectmethod.
C. A supplementary schedule reconciling net income to the cashbasis must also be provided.
D. All of the statements above are correct.
10.Which of the following is an example of noncash investing andfinancing activity that is disclosed in a supplementary scheduleaccompanying the statement of cash flows or in a footnote to thefinancial statements?
A. Selling goods on credit
B. Paying the amount due a creditor
C. Purchasing equipment in exchange for a long-term note
D. Gain on the sale of land
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
