46. A building with a cost of $683,000, and accumulated depreciation of $397,500, was sold at a gain of $82,000. This transaction would be reported on a statement of cash flows using the indirect format as a(n):
A)$367,500 inflow from investing activities and an $82,000 deduction from net income.
B)$285,500 inflow from investing activities and an $82,000 deduction from net income
C)$397,500 inflow from investing activities and an $82,000 deduction from net income
D)$203,500 inflow from investing activities and an $82,000 inflow from operating activities
47. A machine with a cost of $196,500, and a carrying value of $84,900, was sold at a loss of $13,700. This transaction would be reported on a statement of cash flows using the indirect format as a(n):
A)$111,600 inflow from investing activities and a $13,700 outflow from operating activities
B)$97,900 inflow from investing activities and a $13,700 addition to net income
C)$84,900 inflow from investing activities and a $13,700 addition to net income
D)$71,200 inflow from investing activities and a $13,700 addition to net income.
48. The retained earnings account began the year with a balance of $639,600, was reduced for dividends declared, and increased for net income of $312,000. If the cash paid for dividends was $129,500, and the dividends payable account decreased $45,000, the ending balance in the retained earnings account should be:
A)$502,100
B)$777,100
C)$822,100
D)$867,100
49. The retained earnings account began the year with a balance of $700,000 which was increased with net income of $250,000. If the ending balance of retained earnings was $800,000 and all dividends declared were paid how much cash was paid for dividends during the year.
A)$150,000
B)$250,000
C)$100,000
D)$350,000
50. The purchase of treasury stock is reported on the statement of cash flows in the
A)investing section
B)financing section
C)operating section
D)noncash investing and financing section
51. The sale of short-term marketable securities would be reported in the following section of the statement of cash flows:
A)investing activities
B)operating activities
C)financing activities
D)noncash investing and financing activities
52. The conversion of preferred stock into common stock would be reported in the following section of the statement of cash flows:
A)investing activities
B)operating activities
C)financing activities
D)noncash investing and financing activities
53. Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.
A)indirect method
B)direct method
C)both methods
D)neither method
54. Under the indirect method, depreciation expense is added to net income to arrive at cash flow from operating activities. Depreciation is handled this way because
A)it is an inflow of cash
B)it should be subtracted in arriving at net income
C)it is deducted in arriving at net income but does not reduce cash
D)it should be subtracted in arriving at cash from investing activities
55. On a statement of cash flows using the direct format, depreciation expense is:
A)deducted from net income in the operating activities section
B)included as an outflow in the investing activities section
C)added to net income in the operating activities section
D)ignored, since it is a noncash expense
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