Problem C (34 points) FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete each of the following questions and statements in the Answers column words or smounts by writing the appropriate For QUESTIONS/STATEMENTS 0 The statement that reports a firm's major cash intlows and outflows for a period is the statement of cash lows 1-2. What are the two alternative methods of reporting operating activilties in the statement of cash flows? Direet 2. 2. 3-8. Indicate the section of the statement of cash flows (ndirect or direct method or both) in which each of the following would appear (answer operating activities, investing activities, or financing activities) 3. Amortization of bond discount 4. Produc/Services sales 5. Sale of long-berm investments 6. Purchase of machinery 7. Redemption of bonds payable 8. Sale of patents 3. 5. 8. 9. Cash dividends of $30.000 were declared during the year. Cash dividends payable were $14,000 and $18,000 at the beginning and end of the year, respectively. dividends during the year is The amount of cash flows for payment of 9. 10. The net income from operations was $160,000 and the only revenue of expense item not affecting cash was $72,000. What amount of net cash flows from operating activities would appear in the statement of cash flows? 11. A corporation purchased and retired 10,000 shares of its $20 par common stock, originaly issued at par, for $42. Cash thows amounted to 12. If a loss of $7,000 is incurred in selling (for cash) a fixed asset having 12. a book value of $28,000, the total amount reported as a cash flow is The $100,000 net income for the year included a charge of $5,000 for the amortization of bond discount. Exclusive of the effect of other 13. adjustments, the amount of net cash flows from operating activities is 14. A corporation issued $1.000,000 of bonds payable at 102. Cash 14. flows were 25,000 shares of $10 par common stock were issued at $20. The total amount reported in the cash flows from the financing activities section of the statement of cash flows is 15. 15. 16. Cash now per share is normally reported on the balance sheet 6 (answer true or false) Free cash flow is a measure of profitability (answer true or false) 17 17