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1) The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current operations is called the a.

1) The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current operations is called the

a. modified cash flow.

b. PPE cash flow.

c. restricted cash flow.

d. free cash flow.

2) Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

a. acquisition of treasury stock

b. retirement of bond payable

c. declaration of stock dividends

d. issuance of long-term debt

3) Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. 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 is

a. $105,000

b. $169,000

c. $118,000

d. $92,000

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