82. Accounts receivable from sales transactions were $44,000 at the beginning of the year and $53,000 at the end of the year. 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. $114,000C. $96,000D. $158,000
83. 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
84. The following information is available from the current period financial statements:
Net income
$150,000
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. $141,000B. $173,000C. $117,000D. $215,000
85. 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
86. A building with a book value of $ 46,000 is sold for $51,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows: A. an increase of $46,000 from investing activitiesB. an increase of $51,000 from investing activities and a deduction from net income of $5,000 C. an increase of $51,000 from investing activitiesD. an increase of $46,000 from investing activities and an addition to net income of $5,000
87. 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
88. 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
89. 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
90. Land costing $46,000 was sold for $79,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? A. $79,000B. $46,000C. $125,000D. $33,000
91. Equipment with an original cost of $60,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of this transaction, cash would A. increase by $33,000B. decrease by $7,000C. increase by $40,000D. decrease by $27,000
