Exhibit 21-3 the Travis Company Uses the Spreadsheet Method for Completing the Completing

question 8

Multiple Choice

Exhibit 21-3
The Travis Company uses the spreadsheet method for completing the statement of cash flows. The balance sheet accounts and other information related to those accounts are presented below for Travis Company: Additional information related to 2017 activities:
Additional information related to 2017 activities:
1. Net loss for 2017 was $40,000.
2. Cash dividends of $12,000 were declared and paid in 2017.
3. 4,000 shares of common stock were issued to bondholders converting bonds payable into common stock.
4. A long-term investment was sold for $100,000 cash.
5. Equipment costing $100,000 and having accumulated depreciation of $30,000 was sold for
$50,000 cash.
-Refer to Exhibit 21-3. Net cash provided used) in the investing activities section of Travis's 2017 statement of cash flows was

• A) $ 0.
• B) $(150,000).
• C) $( 50,000).
• D) $ 150,000.

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Definitions:

Low Entry Barriers

Conditions that make it easy for new competitors to enter a market, including minimal financial, regulatory, or technological requirements.

Homogeneous Product

A product that is identical in all aspects from all producers, making it indistinguishable among suppliers.

Labor Force Participation

The ratio of the labor force to the total working-age population, indicating the percentage of people working or seeking work.

Professions

Occupations that require specialized education, training, and skills, often associated with professional licensure.