Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December 31, 20X4 and 20X3

Additional Information for Lincoln Corp:

1) Operating expenses for 20X4 included depreciation for $500

2) Accounts payable relate exclusively to the purchase of inventory

3) Machine with a historical cost of $200 was sold at a loss of $20

4) A new machine was purchased during the year for $1,200

5) Dividends were declared

6) Long term notes payable were issued

1. Which of the following is reported in the Investing activities section when using the indirect method is?

Cash outflow for the loss on the sale of a machine for $20 - Incorrect

Cash inflow for purchase of a new machine for $1,200

Cash outflow for the interests paid for $110

Cash outflow for the issuance of notes payables for $230

None of the other alternatives are correct

2. Which of the following is reported in the Financing activities section when using the indirect method is?

Cash outflow for repayment of long term notes payable for $230 - Incorrect

Cash outflow for payment of dividends for $280

Cash outflow for repurchase of common shares

Cash inflow for issuance of common shares

None of the other alternatives are correct