1) If a gain of $8,093 is realized in selling (for cash) office equipment having a book value of $64,417, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is

a.$72,510

b.$56,324

c.$64,417

d.$8,093

2) Equipment with an original cost of $75,713 and accumulated depreciation of $20,759 was sold at a loss of $5,550. As a result of this transaction, cash would

a.increase by $49,404

b.decrease by $5,550

c.increase by $75,713

d.decrease by $20,759

3) Accounts receivable from sales transactions were $48,378 at the beginning of the year and $62,940 at the end of the year. Net income reported on the income statement for the year was $140,570. 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 would be

a.$155,132

b.$126,008

c.$140,570

d.$14,562

4) The following information is available from the current period financial statements:

Net income $ 144,581

Depreciation expense $30,588

Increase in accounts receivable $16,034

Decrease in accounts payable $23,847

The net cash flow from operating activities using the indirect method is

a.$97,959

b.$121,806

c.$215,050

d.$135,288

5) Cash paid for preferred stock dividends should be shown on the statement of cash flows under

a.operating activities

b.financing activities

c.noncash investing and financing activities

d.investing activities

6) Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

a.a loss on the sale of equipment

b.dividends declared and paid

c.depreciation expense

d.gain on sale of land

7) Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

a.dividends paid on common stock

b.an increase in accrued liabilities

c.a gain on the sale of land

d.a decrease in accounts payable

8) Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

a.a decrease in accounts payable

b.a decrease in inventory

c.a decrease in accounts receivable

d.preferred dividends declared and paid

9) Which of the following can be found on the statement of cash flows?

a.changes in retained earnings

b.cash flows from operating activities

c.total changes in stockholders' equity

d.total assets