1. If a gain of $5,278 is realized in selling (for cash) office equipment having a book value of $50,852, find the total amount reported in the cash flows from investing activities section of the statement of cash flows.

Select the correct answer.

$5,278

$56,130

$50,852

$45,574

2. The net income reported on the income statement for the current year was $250,000. 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?

$271,000

$327,000

$279,000

$256,000

3.

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is

$50,000

$65,000

$60,000

$55,000

4.

Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

$500,000

$275,000

$225,000

$50,000