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Can someone please help me answer the attached 3 questions related to the statement of cash flows? 1) Investment Income recorded using the Equity Method
Can someone please help me answer the attached 3 questions related to the statement of cash flows?
1) Investment Income recorded using the Equity Method should be presented in a statement of cash flows (using the indirect method) as a(n): Select one: a. Addition to net income in the Operating Activities section b. Deduction from net income in the Operating Activities section c. Investing activity d. Financing activity e. Footnote only 2) In a statement of cash flows (indirect method), which of the following are deducted from net income to determine net cash flow from operating activities? Select one: a. Amortization of Premium on Bonds Payable, but not Depreciation Expense b. Depreciation Expense, but not Amortization of Premium on Bonds Payable c. Both Amortization of Premium on Bonds Payable and Depreciation Expense d. Neither Amortization of Premium on Bonds Payable nor Depreciation Expense 3) In its statement of cash flows issued for the year ending December 31, Oxford Company reported a net cash inflow from operating activities of $123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income: Depreciation $38,000 Increase in net accounts receivable 31,000 Decrease in inventory 27,000 Decrease in accounts payable 48,000 Increase in prepaid expenses 12,000 Net income is: Select one: a. $29,000 b. $125,000 c. $53,000 d. $149,000 e. $97,000Step by Step Solution
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