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1. When reviewing a company's statement of cash flows, in which section would you prefer to see strong, positive cash flows? a. Financing activities
1. When reviewing a company's statement of cash flows, in which section would you prefer to see strong, positive cash flows? a. Financing activities b. Investing activities c. Operating activities 2. Goldfish Brands reported the following transactions in its statement of cash flows. Which belongs in the operating section? a. Goldfish purchased a new computer for $2,000 cash. b. Goldfish received $15,000 from its shareholders and issued common stock. c. Goldfish paid $6,000 for employees' salaries. d. Goldfish received $1,000 for selling an old piece of equipment. 3. Goldfish Brands reported negative investing cash flows during 2021. What is a possible explanation? a. Goldfish purchased a new building. b. Goldfish paid back a loan to the bank. c. Goldfish paid dividends to its shareholders. d. Goldfish purchased treasury stock. 4. Which transaction would appear as an inflow of cash in the financing section of the statement of cash flows? a. A company sold a delivery vehicle for $5,000 cash. b. A company sold inventory to customers for $210,000. c. A company paid off a $50,000 note payable to a bank. d. A company received $100,000 from its shareholders in exchange for common stock.
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