The following information is available. Calculate the cash flow for operating, investing and financing activities. Net Income 60 Depreciation Expense 5 Decrease in Acct. Rec. 6 Decrease in Acct. Pay. 3 Purchase of Equipment 15 Increase in Supplies 4 The company sold equipment with an original cost of $35 for $30. The accumulated depreciation was $25. The Company issued common stock for $5 and retired a bond for $10. 1. What is the net cash flow from operating activities? A. $42 B. $40 C. $44 D. $55 2. What is the net cash flow from Investing Activities? A. $15 increase B. $15 decrease C. $10 increase D. $20 increase 3. What is the net cash flow from Financing Activities? A. $14 B. $ 5 C. ($14) D. ($ 5) 4. What is the change in the cash account from all activities? A. $40 B. $34 C. $54 D. $41 5. Toodles Company sold equipment for a $3,000 gain that cost $21,000 and had accumulated depreciation of $20,000. How much cash did the company receive on the sale? A. $3,000 B. $7,000 C. $4,000 D. Not enough information to determine the amount 6. The ending balance on the statement of cash flow equals the cash reported on the company's balance sheet at the end of the year. A. True B. False 7. Cash flows from investing activities, as part of the statement of cash flows, include the purchase of long-term assets. A. True B. False 8. Cash inflows from financing activities include the issuance of common stock. A. True B. False 9. If cash dividends of $140,000 were paid during the year and the company sold 1,000 shares of common stock at $40 per share, the statement of cash flows would report net cash outflow from financing activities as ($100,000). A. True B. False 10. When preparing cash flows from the operating activities section of the statement of cash flows by the indirect method, you first add back net income then adjust for gains and losses by adding the gains and subtracting the losses. A. True B. False