QUESTION 26

1. The following data are available for Hannah Corporation.
2. Sale of land $115,000
3. Sale of equipment $85,000
4. Issuance of common stock 140,000
5. Purchase of equipment 170,000
6. Payment of cash dividends 120,000
7. Net cash provided by investing activities is:

a.

$200,000.

b.

$30,000.

c.

$25,000.

d.

$170,000.

1. Bayside Company reported a net loss of $8,000 for the year ended December 31, 2019. During the year, accounts receivable increased $15,000, merchandise inventory decreased $20,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2019, operating activities

a.

provided net cash of $16,000.

b.

used net cash of $11,000.

c.

provided net cash of $8,000.

d.

used net cash of $14,000.

QUESTION 29

1. A company has total fixed costs of $240,000 and a contribution margin ratio of 25%. The total sales necessary to break even are

a.

$300,000.

b.

$288,000.

c.

$960,000.

d.

$1,200,000.

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

a.

not reported on a statement of cash flows.

b.

added to net income.

c.

deducted from net income.

d.

ignored because it does not affect cash.

QUESTION 28

1. Stromboli's Market had the following transactions during 2020:

• Issued $60,000 of par value common stock for cash.
• Repaid a 6 year note payable in the amount of $15,000.
• Acquired land by issuing common stock of par value $50,000.
• Declared and paid a cash dividend of $21,000.
• Sold a long-term investment (cost $3,000) for cash of $6,000.
• Acquired an investment in IBM stock for cash of $20,000.

1. What is the net cash provided by financing activities?

a.

$21,000

b.

$4,000

c.

$24,000

d.

$30,000

QUESTION 19

1. Pusan Company issued common stock for proceeds of $486,000 during 2016. The company paid dividends of $120,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $5,000. The financing section of the statement of cash flows will report net cash inflows of

a.

$361,000.

b.

$266,000.

c.

$291,000.

d.

$456,000.