statement of cash flows1 choose the combination

Question

Statement of Cash Flows

1. Choose the combination that best reflects the appropriate classification of cash received from operating, investing and financing activities.

               Operating                             Investing                                Financing

a.	Cash paid by customers       Sale of operational assets      Issuance of bonds payable
b.	Dividends received              Cash paid by customers        Issuance of bonds payable
c.	Sale of operational assets     Dividends received              Cash paid by customers
d.	Issuance of bonds payable    Sale of operational assets     Dividends received

2. Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flows?

a.	Sale of an investment for cash
b.	Purchase of a machine for cash
c.	Issuance of common stock in exchange for land
d.	Declaration and payment of a cash dividend on common stock

3.   Which of the following is not classified as an operating activity?

a.	Interest received
b.	Interest paid
c.	Dividends received
d.	Dividends paid

4. The amortization of patents should be presented in a statement of cash flows prepared using the indirect method as a(n)

a.	inflow and outflow of cash.
b.	outflow of cash.
c.	addition to net income in the adjustments to reconcile net income to cash from operating activities.
d.	deduction from net income in the adjustments to reconcile net income to cash from operating activities.

5.   Cash inflows from investing activities would include all of the following except

a.	proceeds from sale of operating assets.
b.	proceeds from sale of investments accounted for by the equity method.
c.	interest collect on notes receivable.
d.	proceeds from sale of securities available for sale.

6.   Which of the following would not be a cash flow from financing activities for Carlton Company?

a.	Cash from issuance of Carlton Co. common stock
b.	Cash from issuance of Carlton Co. preferred stock
c.	Cash from issuance of Carlton Co. bonds payable
d.	Cash from sale of Fern Company common stock

7. Financial information for Roberts Company at December 31, 2011, and for the year then ended, are presented below:

			Balance Sheet
					December 31,
					2011	2010
	Cash				$       31,000	$    15,000
	Accounts receivable				28,500	30,000
	Allowance for doubtful accounts				(2,000)	(1,500)
	Inventory				15,000	10,000
	Prepaid insurance				1,400	2,400
	Property, plant, and equipment				81,000	80,000
	Accumulated depreciation				(16,000)	(20,000)
	Land				81,100	40,100
		Total assets			$      220,000	$  156,000
	Accounts payable				$        11,000	$    10,000
	Wages payable				1,000	2,000
	Interest payable				1,000	-
	Notes payable, long-term				46,000	20,000
	Common stock, nopar				136,000	100,000
	Retained earnings				25,000	24,000
		Total liabilities and
		stockholders' equity			$       220,000	$  156,000
			Income Statement
		Sales revenue			$         80,000
		Cost of goods sold			(35,000)
		Depreciation expense			(5,000)
		Bad debt expense			(1,000)
		Insurance expense			(1,000)
		Interest expense			(2,000)
		Salaries and wages expense			(12,000)
		Income tax expense			(3,000)
		Remaining expenses			(13,000)
		Loss on sale of operational assets			(2,000)
		Net income			$          6,000

Additional information:

1.	Wrote off $500 accounts receivable as uncollectible.
2.	Sold an operational asset for $4,000 cash (cost, $15,000, accumulated depreciation, $9,000).
3.	Issued common stock for $5,000 cash.
4.	Declared and paid a cash dividend of $5,000.
5.	Purchased land for $20,000 cash.
6.	Acquired land for $21,000, and issued common stock as payment in full.
7.	Acquired operational assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable.
8.	Paid a $10,000 long-term note installment by issuing common stock to the creditor.
9.	Borrowed cash on a long-term note, $20,000.

Required:

Prepare the statement of cash flows using the indirect method.