1. Which of the following transactions would not be reported on the statement of cash flows? a. Purchase of treasury stock b. Purchase of an operational asset by issuing common stock c. Declaration of a cash dividend which has not yet been paid d. Patent amortization 2. At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in both its lease liability and leased assets accounts. The contract calls for December 31 payments of $15,000. The lessee's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the lessee should reflect which of the following in the first year of the lease contract (ignore noncash disclosures)? a. $15,000 financing cash outflow b. $15,000 operating cash outflow c. $6,000 operating cash outflow; $9,000 financing cash outflow d. $9,000 financing cash outflow 3. Assume cash paid to suppliers for the current year is $350,000, merchandise inventory increased by $5,000 during the year, and accounts payable decreased by $10,000 during the year. What was the cost of goods sold for the current year? a. $335,000 b. $345,000 c. $355,000 d. $365,000 4. Jackson Company began the current year with the following: $ 10,000 (800) Accounts receivable Allowance for doubtful accounts Net account receivable 9.200 During the current year, the following events occurred: Accounts written off Sales on account Bad debt expense recognized $ 1.200 30,000 2,000 At the end of the current year, the company showed a balance in gross accounts receivable (before the allowance for doubtful accounts) of $16,800. What amount would be shown as an operating cash inflow in the statement of cash flows under the indirect method? a. $21,000 b. $22,000 c. $30,000 d. S28,200 5. A firm purchased $20,000 worth of investments classified as securities available for sale. At the end of the year, the investments were worth $23,000. What is the correct presentation of these events in the statement of cash flows prepared under the direct method? a. Investing cash outflow, $20,000 b. Add $17,000 in reconciliation of earnings and net operating cash flow c. Investing cash outflow, $20,000; subtract $3,000 in reconciliation of earnings and net operating cash flow d. No disclosure is needed