A Company Has a Net Cash Inflow from Operating Activities

question 101

Multiple Choice

A company has a net cash inflow from operating activities of $789,000,a net cash outflow of $50,000 from investing activities and a net cash inflow of $100,000 from financing activities.The company paid $124,000 in interest,$186,500 in income taxes,and $200,000 in dividends.Which of the following statements about the statement of cash flows is not true?

• A)Dividends of $200,000 will be reported as a cash outflow in the cash flow from investing activities section.
• B)Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid.
• C)The statement of cash flows will show a net increase to cash and cash equivalents of $839,000.
• D)If the direct method is used,the $124,000 of interest paid and the $186,500 of income taxes paid will be reported in the cash flows from operating activities.

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Definitions:

Behavioural Treatments

Therapeutic interventions focused on changing maladaptive behaviors through techniques such as reinforcement, punishment, and modeling.

Sobriety

The state of not being under the influence of alcohol or any intoxicating substance and often refers to maintaining this state.

Unpleasant Stimulus

A negative or adverse stimulus that causes discomfort or aversion in individuals.