SELECT THE BEST ANSWER (Shows computations are required) 26 27 Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds Which of the following can be found on the statement of cash flows? a. cash flows from operating activities b. total assets c total changes in stockholders' equity d. changes in retained earnings Accounts receivable from sales transactions were $44,000 at the beginning of the year and $53,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is a. $96,000 b. $105,000 c. $1 14,000 d. $158,000 28 29 The net income reported on the income statement for the current year was $275,000 Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $50,000 $ 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 89,000 What is the amount of cash flows from operating activities reported on the statement of cast lows prepared by the indi method a. $198.000 b. $296,000 c. $324,000 d. $352,000