See attached file for full problem description.
0. The statement that reports a firm's major cash inflows and outflows for
a period is the
1-2. What are the two alternative methods of reporting operating activities in the statement of cash flows?
3-8. Indicate the section of the statement of cash flows (indirect or direct method) in which each of the following would appear (answer operating activities, investing activities, or financing activities):
3. Amortization of bond discount
4. Depreciation expense on equipment
5. Sale of long-term investments
6. Sale of equipment at book value
7. Redemption of bonds payable
8. Sale of patents
9. Cash dividends of $50,000 were declared during the year. Cash dividends payable were $14,000 and $16,000 at the beginning and end
of the year, respectively. The amount of cash flows for payment of dividends during the year is
10. The net income from operations was $80,000 and the only revenue or expense item not affecting cash was depreciation expense of $42,000. What amount of net cash flows from operating activities would appear
in the statement of cash flows?
11. A corporation purchased and retired 5,000 shares of its $15 par common stock, originally issued at par, for $35. Cash flows amounted to
12. If a loss of $2,000 is incurred in selling (for cash) a fixed asset having
a book value of $25,000, the total amount reported as a cash flow is
13. The $97,000 net income for the year included a charge of $8,000 for
the amortization of bond discount. Exclusive of the effect of other adjustments, the amount of net cash flows from operating activities is
14. A corporation issued $2,000,000 of bonds payable at 104. Cash
15. 25,000 shares of $10 par common stock were issued at $16. The total amount reported in the cash flows from financing activities section of
the statement of cash flows is
16. Cash flow per share is normally reported on the statement of cash flows (answer true or false)
17. Free cash flow is a measure of profitability (answer true or false)
The solution defines several accounting terms.