1. Which of the following is a noncash investing and financing activity?

1. buying of merchandise inventory on account
2. payment of a cash dividend
3. issuing common stock in exchange for land
4. payment of a 10-month notes payable

2. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

1. an increase in accounts payable
2. a decrease in accounts payable
3. preferred dividends declared and paid
4. an increase in inventory

3. During 2019, the board of directors declared cash dividends of $625,000. The comparative balance sheets indicate that dividends payable were $24,000 on January 1, 2019 and were at $17,500 on December 31, 2019. What amount of cash was paid to stockholders during 2019? (Hint: A T-account would probably help you to visualize this)

1. $642,500
2. $631,500
3. $649,000
4. $625,000

1. A building with a book value of $104,000 is sold for $153,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

1. an increase of $104,000 from investing activities and an addition to net income of $49,000
2. an increase of $104,000 from investing activities
3. an increase of $153,000 from investing activities
4. an increase of $153,000 from investing activities and a deduction from net income of $49,000