Question :
124.Use this information to answer the following question.
Northbrook Corporation preparing : 1244228
124.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.
