Question : 101. Which of the following should be added to net income : 1251458

101. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? 
A. depreciation expense
B. an increase in inventory
C. a gain on the sale of equipment
D. dividends declared and paid

102. The net income reported on the income statement for the current year was $250,000.  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:
 

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

104. Cash dividends of $50,000 were declared during the year.  Cash dividends payable were $10,000 and $20,000 at the beginning and end of the year, respectively.  The amount of cash for the payment of dividends during the year is  
A. $40,000
B. $50,000
C. $70,000
D. $60,000

105. Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is  
A. $118,000.
B. $110,000.
C. $102,000.
D. $150,000.

106. Baxter Company reported a net loss of $13,000 for the year ended December 31, 2010.  During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded.  During 2010, operating activities 
A. provided net cash of $8,000.
B. provided net cash of $2,000.
C. used net cash of $8,000.
D. used net cash of $2,000.

107. A company had net income of $252,000. Depreciation expense is $26,000.  During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000.  How much cash was provided by operating activities? 
A. $217,000.
B. $224,000.
C. $284,000.
D. $305,000.

108. Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500. The value of this transaction in the Investing section of the statement of cash flows is: 
A. $12,500
B. $4,500
C. $2,750
D. $1,750

109. A corporation uses the Indirect Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $3,750.  The value in the operating activities section regarding this event would be: 
A. $25,000
B. ($3,750)
C. $28,750
D. $3,750

110. Accounts receivable resulting from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is  
A. $120,000.
B. $129,000.
C. $151,000.
D. $111,000.