Question : 31) On the statement of cash flows, in which section : 1230068

31) On the statement of cash flows, in which section would the purchase of land appear?

A) Operating activities

B) Investing activities

C) Financing activities

D) Noncash activities

32) Which of the following would be reported on a statement of cash flows as a financing activity?

A) Sale of equipment

B) Amortization expense

C) Collection of notes receivable

D) Purchase of treasury stock

33) In 2012, ABC Corporation purchased treasury stock with a cost of $25,000. During the year, the company paid dividends of $15,000 and issued bonds payable for $750,000. Cash flows from financing activities for 2012 are:

A) $710,000 cash inflow.

B) $760,000 cash inflow.

C) $790,000 cash outflow.

D) $740,000 cash inflow.

34) In 2012, Simply Simple, Inc. sold land for $150,000 cash, purchased equipment for $30,000 cash and issued bonds for $100,000 cash. The net cash provided by investing activities is:

A) $280,000.

B) $220,000.

C) $120,000.

D) $20,000.

35) Tech Support, Inc. issued common stock for $470,000 cash in 2012. The company paid cash dividends of $50,000 and purchased treasury stock at a cost of $20,000. The financing section of the statement of cash flows will report net cash inflows of:

A) $540,000.

B) $500,000.

C) $440,000.

D) $400,000.

36) Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $207,000. If the direct method of preparing the operating section of the statement of cash flows was used:

A) cash provided by operating activities would be the same, $207,000.

B) cash provided by operating activities would be more than $207,000.

C) cash provided by operating activities would be less than $207,000.

D) cash provided by financing and investing activities would equal $207,000.

37) Under the direct method of preparing the financing section of the statement of cash flows, net cash provided by financing activities is $388,000. If the indirect method of preparing the financing section of the statement of cash flows was used:

A) cash provided by financing activities would be less than $388,000.

B) cash provided by financing activities would be more than $388,000.

C) cash provided by financing activities would be the same, $388,000.

D) cash provided by operating activities would equal $388,000.

38) Various transactions of Plymouth Corporation are shown below:

1.Bonds payable are issued for cash at a premium.

2.Equipment is sold for cash at book value.

3.Land is purchased by signing a 5-year, 8% note payable.

4.1,000 shares of ABC Corporation’s common stock are purchased for cash.

5.The conversion option is utilized and bonds payable are converted into common stock.

6.Common stock, with a $1 par value, is sold for $10 per share.

7.Interest receivable on a short-term note receivable is received.

8.Cash is paid on accounts payable.

9.Cash dividends are declared and paid.

10.Merchandise is sold for cash to customers.