1. Noncash investing and financing activities, if material, are: a. Reported in the statement of cash flows are the all financial resources concept b. Reported in the statement of cash flows only if the indirect method is used c. Disclosed in a note or separate schedule accompanying the statement of cash flows d. Not reported or disclosed because they have no impact on cash 2. A gain on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows (indirect method) as: a. A deduction from net income b. An addition to net income c. An inflow and outflow of cash d. An outflow of cash 3. In its accrual-basis income statement for the year ended December 31, 2015, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable December 31, 2014.................................. $1,010,000 Net income for 2015 .................................................................... 140,000 Accounts receivable December 31, 2015.................................. 750,000 Nelson should report cash collected from customers in its 2015 statement of cash flows (direct method) in the amount of: a. $3,240,000 b. $3,100,000 c. $3,380,000 d. $3,760,000 4. Didericksen Companys income statement for the year ended December 31, 2015, reported net income of $360,000. The financial statements also disclosed the following information: Amortization ..................... $20,000 Increase in salaries payable........ $ 28,000 Depreciation...................... 60,000 Dividends paid ........................... 120,000 Increase in accounts Purchase of equipment............... 150,000 receivable .................... 20,000 Increase in long-term note Increase in inventory......... 48,000 payable ................................. 300,000 Decrease in accounts payable ........................ 76,000 Net cash provided by operating activities for 2015 should be reported as: a. $84,000 b. $204,000 c. $234,000 d. $324,000 5. The following information is available from the financial statements of Worthington Corporation for the year ended December 31,2015. Net income ...................... $396,000 Increase in accounts payable...... $24,000 Depreciation expense ........ 102,000 Payment of dividends ............... 54,000 Decrease in accounts Purchase of available-for- receivable .................... 104,000 sale securities ....................... 22,000 Increase in inventories ...... 90,000 Decrease in income taxes payable ................................. 16,000 What is Worthington Corporations net cash flows from operating activities? a. $440,000 b. $466,000 c. $520,000 d. $542,000