2.8 incrensrd provided bry opernting activitie (Cash Flow-ors D) $311,000 23. If
ID: 2601321 • Letter: 2
Question
2.8 incrensrd provided bry opernting activitie (Cash Flow-ors D) $311,000 23. If a Less of $25,000 is inowered in selling for cashi) offece eqagmen n of the stanemcen of e ows is (Cash Fe-INV Value of $90,000, tho toial umount repoeted irn uh lows from inveimg, acivities A) 505,000 B) $90,000 C) $115,000 1) $25,000. 24, Ifa Gain of S12,000 ks incurred in selling (Sar casti) office eqqaipment baving a Nct Book Value of S110,000, the total amount teported in the cash flows from investig activitives section of the statement of cash flews is (Cash Flow-INV) 4) 598,000. B) $122,000. C) $110,000. D) $12,000. 25. In caleulating cash flows from opetaing acivities (Cash Flow - OPS) using the indireet method, a Gain on the Sale of Equipment is A) Added to Net Income (NI). B) Subtracted from Net Incone (NI). C) Ignored because it does not affect Cash. D) Not reported on a Statement of Cash Flows 26. Rubb le Company reported net income of $70,000 for the year. During the year, Accounts Receivable (A/R) increased by S6,000, Accounts Payable (A/P) decreased by S5,000 and Depreciation Expense of $8,000 was recorded. Net cash provided by operating activities for the year is (Cash Flow- OPS) A) $67,000. B) $89,000. C) $63,000. D) $70,000. Page 6Explanation / Answer
22. Cash flow from operating activities
Ans is B.
23.
Cash flow from investing activities = Net book value - Loss on sale
=$90000- $25000 = $65000
Ans is A.
24.
Cash flow from investing activities = Net book value + Gain on sale
= $110000 + $12000 = $122000
Ans is B.
25.
Ans is B.
26.
Ans is A.
Net income $245000 Add depreciation 40000 Add decrease in AR 12000 Add decrease in Inventory 35000 Add increase in PPE -1000 Add increase in AP 8000 Cash flow from operating activities $339000Related Questions
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