Chapter 13 Quiz Version B The following information is available. Calculate the cash flow for operating woru activities. Net Income 40 Depreciation Expense 5 Decrease in Acct. Rec. 6 Decrease in Acct. Pay. 3 Purchase of Equipment 10 Increase in Supplies 5 In addition the company sold equipment with an original cost of $50 for $30. The accumulated depreciation was $45. The company bought back treasury stock for $10 and issued common stock for $8. Cash 40 10 1. What is the net cash flow from operating activities? A. $42 B. $20 C. $18 D. $30 2. What is the net cash flow from investing activities? A. $5 increase B. $5 decrease C. $10 increase D. $20 increase 3. What is the net cash flow from financing activities? A. $2 B. $6 C. ($2) D. ($6) 4. What is the change in the cash account from all activities? A. $40 B. $34 C. $36 D. $41 5. Bonnie Company sold equipment for a $3,000 loss that had a cost of $25,000 and had $17,000 of accumulated depreciation. How much did the company receive on the sale? 25,000-17,000 = 8,000 A $3,000 B. $7,000 B/000-3.000- 5.000 c. $5,000 D. $4,000 6. The ending balance on the statement of cash flow does not equal the cash reported on the company's balance sheet at the end of the year. A. True 1 (B. False 7. Cash flows from investing activities, as part of the statement of cash flows, include the sale of common stock A. True X B. False True Answer 8. Cash inflows from financing activities include the payment of cash dividends. A True / B. False 9. If cash dividends of $135,000 were paid during the year and the company sold 1,000 shares of common stock at $30 per share, the statement of cash flows would report net cash flow from financing activities as $105,000. A. True X B. False + Trve Answer 10. When preparing cash flows from operating activities section of the statement of cash flows by the indirect method, you first add back net income, second add back depreciation/amortization, and third you adjust for gains and losses by adding gains and subtracting losses. A. True B. False