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Statement of Cash Flows: Indicate Which Section

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THE FOLLOWING INFORMATION CAN BE OBTAINED BY EXAMINING A COMPANY'S BALANCE SHEET AND INCOME STATEMENT INFORMATION.

A. DECREASES IN NONCASH CURRENT ASSET ACCOUNT BALANCES.
B. CASH OUTFLOWS TO REPAY LONG-TERM DEBT.
C. INCREASES IN NONCASH CURRENT ASSET ACCOUNT BALANCES.
D. CASH OUTFLOWS MADE TO PURCHASE LONG-TERM ASSETS.
E. DECREASES IN CURRENT LIABILITY ACCOUNT BALANCES.
F. NONCASH EXPENSES (DEPRECIATION)
G. CASH OUTFLOWS TO PURCHASE TREASURY STOCK.
H. GAINS RECOGNIZED ON THE SALE OF LONG-TERM ASSETS.
I. CASH OUTFLOWS TO PAY DIVIDENDS.
J. CASH INFLOWS FROM THE ISSUE OF COMMON STOCK.
K. CASH INFLOWS FROM THE SALE OF LONG-TERM ASSETS.
L. INCREASES IN CURRENT LIABILITY ACCOUNT BALANCES
M. CASH INFLOWS FROM THE ISSUE OF LONG-TERM DEBT
N. LOSSES INCURRED FROM THE SALE OF LONG-TERM ASSETS.

FOR EACH ITEM, INDICATE WHETHER IT WOULD BE USED IN THE COMPUTATION OF NET CASH FLOWS FROM OPERATING, INVESTING, OR FINANCING ACTIVITIES. INDICATE WHETHER THE ITEM WOULD BE ADDED OR SUBTRACTED WHEN DETERMINING THE NET CASH FLOW FROM OPERATING, INVESTING, OR FINANCING ACTIVITIES. ASSUME THE INDIRECT METHOD IS USED TO PREPARE THE OPERATING ACTIVITIES SECTION OF THE STATEMENT OF CASH FLOWS.

FIRST ITEM HAS BEEN DONE AS A EXAMPLE:
A. OPERATING - ADD

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Accounting Definitions

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?
1.
2.
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
flow was
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
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16. Cash flow per share is normally reported on the statement of cash flows (answer true or false)
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