10) A declaration of a cash dividend is a financing activity whereas a declaration of stock dividend is ignored on a statement of cash flows. (answer True or False)

11) When preparing a statement of cash flows (indirect method), an increase in prepaid expenses would result in an addition to net income. (answer True or False)

12) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of equipment and a loss on impairment of an asset would both be added back as an adjustment to net income. (answer True or False)

13) A statement of cash flows typically would not disclose the effects of an exchange of a truck for machinery. (answer True or False)

14) A stock split is an example of an investing and financing activity. (answer True or False)

15) Grape Company sold a plant asset during 2021. The original cost of the plant asset was $700,000 and the accumulated depreciation at date of sale was $550,000. The proceeds from the sale of the plant asset was $83,000. The cash proceeds from the sale of the plant asset should be shown in which section of the statement of cash flows?

16) Blue Sky Corporation had net income for 2021 of $2,500,000. Additional information is as follows:

Depreciation of plant assets $800,000

Amortization of intangibles 320,000

Decrease in accounts receivable 420,000

Increase in accounts payable 440,000

Blue Sky's net cash provided (used) by operating activities for 2021 was ________

17) Yellow Company reported net income of $520,000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $85,000; amortization of a patent, $40,000; income from an investment in common stock of XYZ Inc., accounted for under the equity method, $62,000; and amortization of a bond discount, $17,000. Yellow also paid an $60,000 dividend during the year. The net cash provided (used) by operating activities would be reported at ______

18) Apple, Inc. reported net income of $65,000 for the year ended December 31, 2021. Included in net income were depreciation expense of $20,200 and a gain on sale of equipment of $5,400. The equipment had an historical cost of $70,000 and accumulated depreciation of $55,000. Each of the following accounts increased during 2021:

Land $13,000

Prepaid rent $13,600

Available-for-sale securities $3,000

Bonds payable $20,000

What is the amount of cash provided by or used by investing activities for Apple, Inc. for the year ended December 31, 2021?

19) Maine Company reported net income of $580,000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $82,000; amortization of a patent, $55,000; income from an investment in common stock of Blue Inc., accounted for under the equity method, $72,000; and amortization of a bond discount, $15,000. Maine paid a $104,000 dividend during the year. The net cash provided by operating activities would be reported at________

20) Rangers Co. provided the following information on selected transactions during 2021:

Purchase of land by issuing bonds $1,300,000

Proceeds from issuing bonds 2,500,000

Purchases of inventory 3,800,000

Purchases of treasury stock 460,000

Dividends paid to common stockholders 340,000

Proceeds from issuing common stock 1,600,000

Proceeds from sale of equipment 280,000

The net cash provided (used) by financing activities during 2021 is ________