6) A company had a beginning balance in retained eamings of $430,000. t had net income of 560,000 and paid out cash dividends of S56.250 in the current period. The ending balance in retained earnings equals: A) $116,250. 8) $426,250. 7) $433,750 The following data was reported by a corporation $546,250 $490,000 Authorized shares Issued shares 20,000 15,000 3,000 Treasury shares The number of shares outstanding is: A) 17,000. 15,000. 23,000. D) 12,000. 20,000. 8) Which one of the following is a typical example of cash flow from operating activitles? A) Payments by a merchandiser to acquire equity securities of other companies Proceeds from collecting the principal amounts of loans. Proceeds from the issuance of bonds and notes payable. Receipts of cash sales. Repayment of principals on loans. CI D) EJ The appropriate section in the statement of cash flows for reporting the purchase of equipment tor cash is: 9) Investing activities. Schedule of noncash investing or financing activity This is not reported on the statement of cash flows. Operating activities. Financing activities. Al B) C1 DJ E) The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is: 10) Operating activities. Financing activities. This is not reported on the statement of cash flows. Schedule of noncash investing or financing activity. Investing activities. A) B) C) D) E The statement of cash flows helps analysts evaluate all but which of the following? 11) Source of cash used for investing activities. Source of cash used for debt repayments. A) B) C) Source of cash used for factory additions. Ability of the company to generate profit. Differences between net income and net operating cash flow. D) E) Page 2