Question
Boston Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2019: 1. Retained Earnings, beginning
Boston Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2019:
1. Retained Earnings, beginning balance, $138,000
2. Retained Earnings, ending balance,$124,000
3. There is a net loss of $13,000 for the year.
What is the amount of dividends declared during the year?
A.$1,000
B.$27,000
C.$12,000
D.$4,000
Which of the following sections of the statement of cash flows is presented differently between the direct method and indirect method?
A.investing activities
B.operating activities
C.financing activities
D.non-cash investing and financing activities
Which of the following is considered an operating activity on the statement of cash flows prepared using the direct method?
A.payment to purchase equipment
B.the receipt of cash from sale of equipment
C.dividends paid to stockholders
D.sale of merchandise inventory for cash
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