6.When determining the amount of depreciation to be used in the operations section, it is better the use the information from which area: a. Balance sheet under the change in accumulated depreciation b. Income statement under the depreciation expense amount c. In the Statement of Retained Earnings as a note to amount written-off for assets that had been sold. d. Under Other Gains and Losses because of assets that had been sold and written-off. 7.The net cash provided by operating activities in Moon companys statement of cash flows for 2004 was $154,000. For 2004, depreciation on plant assets was $60,000, amortization of patents was $10,000, and cash dividends paid on common stock was $72,000. Based only on the information given above, Moons net income for 2004 was a. $154,000 b. $84,000 c. $12,000 d. $156,000 8.Equipment which cost $138,000 and had accumulated depreciation of $74,000 was sold for $72,000. This transaction should be shown on the statement of cash flows (indirect method) as a(n) a. Addition to net income of $8,000 and a $72,000 cash inflow from financing activities b. Deduction from net income of $8,000 and a $94,000 cash inflow from investing activities c. Deduction from net income of $8,000 and a $72,000 cash inflow from investing activities d. Addition to net income of $8,000 and a $94,000 cash inflow from financing activities. 9.The balance in retained earnings at December 31, 2003 was $810,000 and at December 31, 2004 was $654,000. Net income for 2004 was $563,000. A stock dividend was declared and distributed which increased common stock $225,000 and paid-in capital $125,000. A cash dividend was declared and paid. The stock dividend should be reported on the statement of cash flows (indirect method) as a. An outflow from financing activities of $225,000 b. An outflow from financing activities of $350,000 c. An outflow from investing activities of $350,000 d. Stock dividends are not show on a statement of cash flows 10.Vance Co.s prepaid insurance was $30,000 at December 31, 2004 and $15,000 at December 31, 2003. Insurance expense was $12,000 for 2004 and $9,000 for 2003. What amount of cash disbursements for insurance would be reported in Vances 2004 net cash provided by operating activities presented on a direct basis? a. $33,000 b. $27,000 c. $18,000 d. $12,000