Question :
71. Canadian Beer reported they sold equipment for $222 million cash : 1228465
71. Canadian Beer reported they sold equipment for $222 million cash and purchased $1,515 million of new equipment using cash. The equipment sold had a net book value of $150 million. Cash flow from investing activities would show
A. an inflow of $222 million and outflow of $1,515 million.
B. an inflow of $222 million and outflow of $150 million.
C. cash paid for equipment of $1,293 million.
D. a net outflow of $1,365 million.
72. Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million. How much will be reported as net investing cash flow?
A. $6.3 million net cash outflow.
B. $5.3 million net cash outflow.
C. $5.1 million net cash outflow.
D. $4.8 million net cash outflow.
73. Roberts Company sold equipment for $250,000, purchased a building for $6,500,000, sold short-term investments for $280,000, repaid principal on a note payable for $2,300,000 plus $230,000 of interest, and paid cash dividends of $20,000. How much was the net cash flow from investing activities?
A. $6,250,000 outflow
B. $8,320,000 outflow
C. $8,270,000 outflow
D. $5,970,000 outflow
74. Roberts Company sold equipment for $250,000, purchased a building for $6,500,000, sold short-term investments for $280,000, repaid principal on a note payable for $2,300,000 plus $230,000 of interest, and paid cash dividends of $20,000. How much was the net cash flow from financing activities?
A. $2,300,000 outflow
B. $2,320,000 outflow
C. $2,530,000 outflow
D. $2,550,000 outflow
75. During 2010, Tommy’s Toys reported the following: long-term debt repayments, $503 million; interest paid, $143 million; proceeds from exercise of stock options, $27 million, and issue of common stock in exchange for land costing $10 million. How much is the 2010 net cash flow from financing activities?
A. $476 million net cash outflow.
B. $530 million net cash outflow.
C. $673 million net cash outflow.
D. $76 million net cash outflow.
76. Burich Co. reported short-term borrowings of $2.5 million, long-term borrowings of $6.8 million, repayments of long-term borrowings of $3.5 million, interest payments of $780,000, repurchase of treasury shares of $.5 million and cash dividends declared of $1.1 million. What is the cash flow from financing activities?
A. $5,300,000 net cash inflow
B. $4,200,000 net cash inflow
C. $1,700,000 net cash inflow
D. $2,800,000 net cash inflow
77. Which of the following is correct?
A. Repayments of principal and interest reduce financing activities cash flows.
B. Repurchase of treasury shares is a cash outflow connected to investing activities.
C. If a company borrows $450 million in long-term notes and repays $380 million of long-term notes, and then these items must both be disclosed and not netted against each other in the financing section.
D. Issuing common stock in exchange for the purchase of a building creates both a financing activity and investing activity cash flow.
78. Which of the following would be a financing activities cash flow?
A. Common stock dividends distributed.
B. Interest payments.
C. Repurchase of treasury shares.
D. Purchase of a building by signing a note payable.
79. Which of the following would not be a financing activities cash flow?
A. Issuing common stock for cash.
B. Cash dividend payments.
C. Purchasing treasury stock.
D. Purchase of a building by signing a note payable.
80. Lab Industries, Inc., issued $50,000 of bonds, paid cash dividends of $8,000, sold long-term investments for $12,000, received $5,000 of dividend revenue, purchased treasury stock for $15,000, and purchased new equipment for $19,000. What is the net cash flow from financing activities?
A. $70,000 inflow
B. $27,000 inflow
C. $80,000 inflow
D. $20,000 outflow
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