6.The sale of an intangible asset for cash is classified in the statement of cash flows as a(n):

Multiple Choice

• Operating activity.

• Investing activity.

• Financing activity.

• Noncash activity.

7.The net cash flows from operating, investing, and financing activities will equal:

Multiple Choice

• Net income minus dividends for the year.

• The ending balance of cash this year.

• The change in cash reported in the balance sheet from this year versus last year.

• The change in stockholders equity for the year

8.Depreciation expense is added to net income in the statement of cash flows under the indirect method because:

Multiple Choice

• Cash was received.

• Cash was paid.

• Depreciation expense reduced net income, but is a noncash item.

• Depreciation is tax deductible.

9.Kela Corporation reports net income of $470,000 that includes depreciation expense of $73,000. Also, cash of $54,000 was borrowed on a 5-year note payable. Based on this data, total cash inflows from operating activities are:

Multiple Choice

• $397,000.

• $597,000.

• $543,000.

• $524,000.