1) In preparing a statement of cash flows, an item included in determining net cash flow from operating activities is the A. Amortization of a bond premium. B. Proceeds from the sale of equipment for cash. C. Cash dividends paid. D. Purchase of treasury stock. 2) All of the following should be classified under the operating section in a statement of cash flows except a A. Decrease in inventory. B. Depreciation expense. C. Decrease in prepaid insurance. D. Purchase of land and building in exchange for a long-term note. 3) Which one of the following transactions should be classified as a financing activity in a statement of cash flows? A. Purchase of equipment. B. Purchase of treasury stock. C. Sale of trademarks. D. Payment of interest on a mortgage note. 4) All of the following should be classified as investing activities except cash A. Outflows to purchase manufacturing equipment. B. Inflows from the sale of bonds of other entities. C. Outflows to creditors for interest. D. Inflows from the sale of a manufacturing plant. 5) When using the indirect method to prepare a statement of cash flows, which one of the following should be deducted from net income when determining net cash flows from operating activities? A. An increase in accrued liabilities. B. Amortization of premiums on bonds payable. C. A loss on the sale of plant assets. D. Depreciation expense. 6) When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except A. Interest received on investments in bonds. B. Interest paid dn the company's bonds. C. Cash collected from customers, D. Cash dividends paid on the company's stock. 7) The net income for Cypress, Inc. was $3,000,000 for the year ended December 31. Additional information is as follows: Depreciation on fixed assets $1,500,000 Gain from cash sale of land 200,000 Increase in accounts payable 300,000 Dividends paid on preferred stock 400,000 The net cash provided by operating activities in the statement of cash flows for the year ended December 31 should be. A. $4,200,000 B. $4,500,000C. $4,600,000 D. $4,800,000 8)