1.During 2018, Victory Solutions had the following cash flows: (1) received cash of $5,000 billed to a customer in 2017; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000. What is Victory Solution's net cash flows from financing activities for 2018?

a. $40,000.

b. $30,000.

c. $22,000.

d. $16,000.

2. A company had the following cash flows for the year:

(a) Purchased land, $60,000 (b) Borrowed from a local bank, $100,000 (c) Paid employee salaries, $50,000 (d) Issued common stock, $75,000 (e) Paid dividends, $20,000 (f) Sold equipment, $40,000 (g) Sold services to customers, $120,000 What amount would be reported for net investing cash flows on the Statement of Cash Flows?

a. ($20,000).

b. $70,000.

c. $155,000.

d. $40,000.

3. Which of the following items is reported in the operating section of the statement of cash flows using the direct method?

a. Depreciation expense.

b. Gain on sale of an asset.

c. Cash received from customers.

d. Loss on sale of an asset.

4. Which of the following would be classified as an investing cash flow?

a. Issue bonds.

b. Receive cash in advance from a customer.

c. Sell a piece of equipment below cost.

d. Repurchase the company's own shares of common stock.

5. Given the items below, which of the following is an addition to net income to arrive at operating cash flows using the indirect method?

I. Loss on sale of assets II. Increase in Supplies III. Increase in Accounts Payable IV. Increase in Accounts Receivable

a. I. and III.

b. I. only.

c. III. and IV.

d. II. and III.