Question : 81. Which one of the following below should be added to : 1234256

81. Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method? A. a gain on the sale of landB. a decrease in accounts payableC. an increase in accrued liabilitiesD. dividends paid on common stock

82. On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be A. deducted from net income in converting the net income reported on the income statement to cash flows from operating activitiesB. added to net income in converting the net income reported on the income statement to cash flows from operating activitiesC. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividendsD. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

83. Accounts receivable arising from trade transactions amounted to $45,000 and $52,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is A. $105,000B. $112,000C. $98,000D. $140,000

84. The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: 

End

Beginning

Cash

$  50,000

$  60,000

Accounts receivable

112,000

108,000

Inventories

105,000

93,000

Prepaid expenses

4,500

6,500

Accounts payable (merchandise creditors)

75,000

89,000

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? A. $198,000B. $324,000C. $352,000D. $296,000

85. The following information is available from the current period financial statements: 

Net income

$140,000

Depreciation expense

28,000

Increase in accounts receivable

16,000

Decrease in accounts payable

21,000

The net cash flow from operating activities using the indirect method is  A. $131,000B. $163,000C. $107,000D. $205,000

86. On the statement of cash flows, the cash flows from investing activities section would include  A. receipts from the issuance of capital stockB. payments for dividendsC. payments for retirement of bonds payableD. receipts from the sale of investments

87. A building with a book value of $ 45,000 is sold for $50,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows: A. an increase of $45,000 from investing activitiesB. an increase of $50,000 from investing activities and a deduction from net income of $5,000 C. an increase of $50,000 from investing activitiesD. an increase of $45,000 from investing activities and an addition to net income of $5,000

88. Cash paid for equipment would be reported in the statement of cash flows in A. the cash flows from operating activities sectionB. the cash flows from financing activities sectionC. the cash flows from investing activities sectionD. a separate schedule

89. If a gain of $9,000 is incurred in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is A. $46,000B. $9,000C. $55,000D. $64,000

90. Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows? A. issuance of bonds payableB. issuance of capital stockC. purchase of treasury stockD. purchase of noncurrent assets