Question Details

Harbor Company reported net income 



	1.	If a gain of $15,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.	$95,000.
b.	$115,000.
c.	$100,000.
d.	$15,000.

2.	If a loss of $20,000 is incurred in selling (for cash) office equipment having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.	$60,000.
b.	$80,000.
c.	$100,000.
d.	$20,000.


	3.	Harbor Company reported net income of $90,000 for the year ended December 31, 2011.  During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded.  Net cash provided by operating activities in 2011 using the indirect method was
a.	$149,000.
b.	$95,000.
c.	$107,000.
d.	$85,000.


	4.	The third (final) step in preparing the statement of cash flows is to
a.	analyze changes in non-current asset and liability accounts.
b.	compare the net change in cash with the change in the cash account reported on the statement of financial position.
c.	determine net cash provided by operating activities.
d.	list the non-cash activities.


	5.	Which one of the following items is not necessary in preparing a statement of cash flows?
a.	Determine the change in cash
b.	Determine the cash provided by operations
c.	Determine cash from financing and investing activities
d.	Determine the cash in all bank accounts




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help