questions 67-71

67. What primary information is provided in the statement of cash flows? A. The amount of profits earned during a period B. Where a company's money comes from and where it goes C. Estimates of future cash flows D. Cash receipts and cash payments of an entity's profitable activities during a period 68. Which one of the following is an important reason to evaluate a company's cash flow? A. Without positive cash flows, a company earns no profit. B. Minimum cash balances must be maintained by all companies. C. Stockholders want to know that the company can generate cash consistent with earning a reasonable retum on their investments. D. Creditors want to be sure that the company has significant cash inflows from financing activities. 69. Neptune Beach Boards provided the following information for the current period: Proceeds from sale of equipment Dividends paid to stockholders Purchase of inventories on account Borrowing a long-term loan from the bank Loan payments made Purchase of land for cash Payment for inventory previously acquired on account Cash collected from customers $ 125,000 21,000 34,000 44,000 4,000 65,000 33,000 200,000 How much is the net cash from investing activities during the year? A. $60,000 B. $39,000 C. $27,000 D. $246,000 McCorkle Company provided the following information from its accounting records during the year: 70. Acquired land by signing a loan $ 150,000 Proceeds from issuing stock 80,000 Dividends paid to stockholders 65,000 Proceeds from sale of building 120,000 Purchases of inventories 45,000 Collections from customers 225,000 Payment of loan 70,000 How much is net cash provided (used) by financing activities? A. (5205,000) B. $245,000 C. $15,000 D. (555,000) 71. The Linux Company had the following results during 2009: Cash collected from accounts receivable $54,000 Cash paid to purchase office supplies $1,100 Cash collected from the issuance of common stock $50,000 Cash paid to purchase equipment with a 5 year life $80,000 The company's net cash provided (used by) operating activities prepared using the direct method A. 552.900 B 527,100) C 5104.000 D. 574,000