20. The primary purpose of the statement of cash flows is to provide information about

a. the financial position of the company.

b. the profitability of the company.

c. the investing and financing activities of the company.

d. the cash inflows and outflows of the company.

21. Cash flows from acquiring and disposing of long-term assets are classified as

a. operating activities.

b. investing activities

. c. financing activities.

d. purchasing activities.

22. Cash flows from borrowing and paying off a 90-day bank loan are classified as

a. operating activities. b. investing activities. c. financing activities. d. purchasing activities.

23. Cash flows from issuing and repurchasing stock or issuing and repaying (retiring) debt are classified as

a. operating activities. b. investing activities. c. financing activities. d. borrowing activities.

24. Cash flows from acquiring and selling products are classified as

a. operating activities. b. investing activities. c. financing activities. d. distribution activities.

25. Presented below is the operating activities section of the statement of cash flows for Golden Consulting for 2016:

Operating activities:

Net income $ 92,000

Add: Depreciation 20,000

Decrease in accounts receivable 8,000

__________

$120,000

Deduct: Decrease in accounts payable (6,000)

Net cash inflow from operating activities $114,000

Which method of preparing the operating activities section has Golden Consulting used?

a. The direct method b. The indirect method c. Either method d. Cannot be determined without further information