A Company Has a Net Cash Inflow from Operating Activities

question 74

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 cash dividends.Which of the following statements about the statement of cash flows is not correct?

• A)The cash dividends of $200,000 paid 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 in 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:

Pathogens

Microorganisms or agents that cause disease when they infect a host organism.

Autoclave

A device used to sterilize equipment and supplies by subjecting them to high-pressure saturated steam at 121 °C for around 15 to 20 minutes.

Sterile Areas

Specific zones within healthcare facilities maintained free from all forms of living microorganisms to prevent infections during medical procedures.

Bacterial Spore

A primitive, thick-walled reproductive body capable of developing into a new individual; resistant to killing through disinfection.