Question Details

Wilson Company reported net income 




1.	If a gain of $12,000 is incurred in selling (for cash) office equipment having a book value of $110,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.	$98,000.
b.	$122,000.
c.	$110,000.
d.	$12,000.


	2.	If a loss of $25,000 is incurred in selling (for cash) office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.	$65,000.
b.	$90,000.
c.	$115,000.
d.	$25,000.


	3	Wilson Company reported net income of $105,000 for the year ended December 31, 2014.  During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded.  Net cash provided by operating activities in 2014 using the indirect method was
a.	$101,000.
b.	$109,000.
c.	$120,000.
d.	$118,000.


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





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