QUESTION 16 Which event describes a non-cash Investing and Financing activity? a. Payment of a cash dividend. b. Payment on a Note Payable. Oo. Purchase of inventory on account. d. Issue of Common Stook in exchange for Land. QUESTION 17 The Net Income for the year was $275,000. Depreciation on equipment and Amortization on a patent were $40,000 and 50.000 respectively. Balances in the current assets and current liabilities were as follows: Ending Beginning Cash $50,000 500.000 Acct. Rec. $112.000 $108,000 Inventory $105.000 503.000 Prepaid Exp.$4,500 $6,500 Acct. Pay. $75,000 $80,000 Cash from Operating Activities would be a. $198.000 b. $200,000 5324.000 d. 5362.000 QUESTION 18 A Bull Dozer with a book value of $54.000, sold for 303,000. This transaction would be shown on the Statement of Cash Flows as follows: a. An increase of $54.000 from Investing Activities b. An increase of $63.000 from Investing activities and a deduction to Operating activities of 50.000 c. An increase of 50.000 from investing Activities d. An increase of 554.000 from investing Activities and an addition to Operating Activities of 50.000 QUESTION 19 In calculating the cash flow from operating activities, again on the sale of equipment is a. Added to Net Income b. Deducted from Net Income Ignored because it does not affect cash d. Reported as a non-cash investing Activity