30. The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$ 50,000	$ 60,000
Accounts receivable	112,000	108,000
Inventories	105,000	93,000
Prepaid expenses	4,500	6,500
Accounts payable (merchandise creditors)	75,000	89,000

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a. $271,000

b. $279,000

c. $256,000

d. $327,000

26 Investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet.

a. true
b. false

24 Purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Sold $250,000 of bonds at 97 plus accrued interest. The journal entry for the sale would include:

a. a debit to Cash for $242,500

b. a credit to Loss on Sale for $7,500

c. a debit to Cash for $244,300

d. a credit to Gain on Sale for $7,500

14 If the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.

a. true
b. false