Marigold Corp. purchased 3700 shares of its own previously issued $10 par common stock for $111000. As a result of this event,

Marigold's Common Stock account decreased $37000.

Marigold's total stockholders' equity decreased $111000.

Multiple Choice Question 111

In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment is

not reported on a statement of cash flows.

deducted from net income.

added to net income.

ignored because it does not affect cash.

Marigold's Paid-in Capital in Excess of Par Value account decreased $74000.

All of these answer choices are correct.

Multiple Choice Question 186

Pina Colada Corp.'s December 31, 2020 balance sheet showed the following:

6% preferred stock, $10 par value, cumulative,

40000 shares authorized; 17000 shares issued

$ 170000

Common stock, $10 par value, 4,000,000 shares authorized;

2,600,000 shares issued, 2,560,000 shares outstanding

19500000

Paid-in capital in excess of par value - preferred stock

67000

Paid-in capital in excess of par value - common stock

28800000

Retained earnings

9650000

Treasury stock (40,000 shares)

630000

Pina declared and paid a $83500 cash dividend on December 15, 2020. If the company's dividends in arrears prior to that date were $22300, Pina's common stockholders received

no dividend.

$73300.

$63300.

$51000.

Multiple Choice Question 123

In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)

addition to net income.

subtraction from net income.

addition to cash flow from investing activities.

subtraction from cash flow from investing activities.

Multiple Choice Question 137

If $1416000 of bonds are issued during the year but $2950000 of old bonds are retired during the year, the statement of cash flows will show a(n)

increase in cash of $1416000 and a decrease in cash of $2950000.

net increase in cash of $1534000.

net decrease in cash of $1416000.

net loss on retirement of bonds of $1534000.

Multiple Choice Question 144

The statement of cash flows will not provide insight into

whether cash flow is greater than net income.

how the retirement of debt was accomplished.

the exact proceeds of a future bond issue.

why dividends were not increased.

Multiple Choice Question 147

If Sunland Company realizes a gain of $70000 on a cash sale of equipment having a book value of $516000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

$446000.

$70000.

$586000.

$516000.