Question Details

Net cash provided by investing activities 



	1.	In Shannon Company, there was an increase in the land account during the year of $48,000. Analysis reveals that the change resulted from a cash sale of land at a cost $110,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section:
a.	as a net purchase of land, $48,000.
b.	only as a purchase of land $158,000.
c.	as a purchase of land $158,000 and a sale of land $110,000.
d.	only as a sale of land $110,000.

2.	The following data are available for Springer Corporation.
Net income	₤300,000
Depreciation expense	60,000
Dividends paid	90,000
Gain on sale of land	15,000
Decrease in accounts receivable	30,000
Decrease in accounts payable	45,000
Net cash provided by operating activities is:
a.	₤240,000.
b.	₤330,000.
c.	₤360,000.
d.	₤420,000.


	3.	The following data are available for Nichols Corporation.
Sale of land	$200,000
Sale of equipment 	100,000
Issuance of ordinary shares	140,000
Purchase of equipment 	60,000
Payment of cash dividends	120,000

Net cash provided by investing activities is:
a.	$240,000.
b.	$260,000.
c.	$300,000.
d.	$380,000.


4.	The following data are available for Cole Company.
Increase in accounts payable	$120,000
Increase in bonds payable	300,000
Sale of investments	150,000
Issuance of ordinary shares	180,000
Payment of cash dividends	90,000

Net cash provided by financing activities is:
a.	$270,000.
b.	$390,000.
c.	$480,000.
d.	$510,000.


	5.	If $250,000 of bonds are issued during the year but $100,000 of old bonds are retired during the year, the statement of cash flows will show a(n)
a.	net increase in cash of $150,000.
b.	net decrease in cash of $150,000.
c.	increase in cash of $250,000 and a decrease in cash of $100,000.
d.	net gain on retirement of bonds of $150,000.





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