QUESTION 11

1. Reiser Co. has 8,000 shares of no-par common stock with a $50 stated value and 3,000 shares of $40 par, 5 percent noncumulative preferred stock outstanding. if the company declares a cash dividend of $22,000, the amount of the dividend paid to preferred stockholders is:

		$5,000
		$6,000
		$11,00
		$5,500

QUESTION 12

1. Which of the following would be reported as cash flow from financing activities

		Cash receipts from the sale of equipment
		Cash receipts from interest on notes receivable
		Cash receipts from the issuance of long-term debt
		Cash receipts from dividends on long-term investments

QUESTION 13

1. Which of the following would be classified as an investing activity on a statement of cash flows

		Cash recevied from dividends
		Cash paid for interest
		Cash received from the sale of land
		Cash used to repay principal amounts borrowed

QUESTION 14

1. Chen Corporation use the direct method of preparing a statement of cash flows. Based on the following cash flows during 2012, what is the net inflow (outflow) from investing activities:

Cash receipts from issuance of stock			20,000
Cash received from customers			10,000
Dividends received on long term investments			5,000
Cash paid for wages			6,000
Cash paid for insurance			500
Cash paid for dividends			3,000
Cash paid to purchase building			30,000
Loan made to another company			10,000
		($10,000)
		($30,000)
		($40,000)
		($43,000)

QUESTION 15

1. Based on the following information and using the direct method of preparing a statement of cash flows, what would be the net cash inflow (outflow) from financing activities?

Cash receipts from issuance of stock			20,000
Cash received from customers			10,000
Dividends received on long term investments			5,000
Cash paid for wages			6,000
Cash paid for insurance			500
Cash paid for dividends			3,000
Cash paid to purchase builidng			30,000
Loan made to another company			10,000
		$20,000
		$17,000
		($3,000)
		($13,000)