The cost of merchandise sold during the year was $65,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct methodof reporting cash flows from operating activities, cash payments for merchandise total

Select one:

a. $65,000

b. $64,000

c. $68,000

d. $67,000

Income tax was $125,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is

Select one:

a. $195,000

b. $135,000

c. $115,000

d. $125,000

Sales for the year were $1,200,000. Accounts receivable were $150,000 and $110,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is

Select one:

a. $1,160,000

b. $1,310,000

c. $1,350,000

d. $1,240,000

Firefly Inc. sold land for $445,000 cash. The land had been purchased five years earlier for $485,000. The loss on the sale was reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

Select one:

a. $40,000

b. None of the choices are correct

c. $445,000

d. $485,000

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

Select one:

a. ignored because it does not affect cash

b. added to net income

c. deducted from net income

d. reported supplementally as a noncash investing and financing activity