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Use this information to answer the following question.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 1 would be found on the statement of cash flows in the
|
a. |
cash flows from investing activities section. |
|
b. |
noncash investing and financing transactions section. |
|
c. |
cash flows from operating activities section. |
|
d. |
cash flows from financing activities section. |
125.Use this information to answer the following question.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 2 would be found on the statement of cash flows in the
|
a. |
cash flows from investing activities section. |
|
b. |
cash flows from operating activities section. |
|
c. |
noncash investing and financing transactions section. |
|
d. |
cash flows from financing activities section. |
126.Use this information to answer the following question.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 3 would be found on the statement of cash flows in the
|
a. |
cash flows from financing activities section. |
|
b. |
cash flows from investing activities section. |
|
c. |
cash flows from operating activities section. |
|
d. |
noncash investing and financing transactions section. |
127.Use this information to answer the following question.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 4 would be found on the statement of cash flows in the
|
a. |
cash flows from operating activities section. |
|
b. |
cash flows from investing activities section. |
|
c. |
cash flows from financing activities section. |
|
d. |
noncash investing and financing transactions section. |
128.Use this information to answer the following question.
Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 5 would be found on the statement of cash flows in the
|
a. |
cash flows from financing activities section. |
|
b. |
cash flows from investing activities section. |
|
c. |
noncash investing and financing transactions section. |
|
d. |
cash flows from operating activities section. |
129.When a statement of cash flows is prepared using the indirect method,
|
a. |
the increase in cash is different than when the direct method is used. |
|
b. |
net income is the starting point in determining cash flows from operations. |
|
c. |
cash paid for dividends is not included. |
|
d. |
the amount of cash collected from customers is calculated. |
130.The indirect method of preparing a statement of cash flows
|
a. |
shows collections from customers rather than the change in Accounts Receivable. |
|
b. |
provides a different result than the direct method. |
|
c. |
eliminates the need for a schedule of noncash investing and financing transactions. |
|
d. |
adjusts net income for changes in current accounts. |
131.Which of the following items would not be included in a statement of cash flows prepared using the indirect method?
|
a. |
Cash paid for wages |
|
b. |
Sale of a plant asset |
|
c. |
Net income |
|
d. |
Cash paid for dividends |
132.Analysis of the financing activities section of the statement of cash flows will disclose
|
a. |
the amount of money loaned to others. |
|
b. |
the extent of investments in plant and equipment. |
|
c. |
net income for the period. |
|
d. |
any sales or repurchases of stock. |
133.To determine whether a company's operations are covering its dividend payments, it is best to focus on which of the following sections of the statement of cash flows?
|
a. |
Investing activities only |
|
b. |
Operating activities and investing activities |
|
c. |
Investing activities and financing activities |
|
d. |
Operating activities and financing activities |
134.All of the following are financing activities, except
|
a. |
the issuance of common stock. |
|
b. |
the issuance of bonds. |
|
c. |
the receipt of a cash dividend. |
|
d. |
the purchase of treasury stock |
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