Taylor Company Uses the Indirect Method to Prepare Its Statement $\quad$

question 2

Multiple Choice

Taylor Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Taylor Company
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Comparative Balance Sheet
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31, 2014 and 2013
$\begin{array}{lrrc}\hline&2014&2013& \text { Increase/decrease } \\ \text { Common Stock } & \$ 30,000 & \$ 2,000 & \$ 28,000 \\\text { Retained Earnings} & 154,000 & 150,000 & 4,000 \\\text { Treasury Stock} & (8,000) & (5,000) & (3,000) \\\text {Total equity} & \$176,000& \$147,000 & \$29,000 \\\hline\end{array}$ Note: Net Income for the year was $56,000.
Which of the following statements is true of Taylor's statement of cash flows for the year 2014?

• A) The company issued stocks worth $30,000 during the year 2014.
• B) The company declared $52,000 as dividends during the year 2014.
• C) The company purchased treasury stock worth $8,000 during the year.
• D) The net cash flow from financing activities amounts to $176,000.

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Definitions:

Genetic Variation

The diversity in gene frequencies within a population, which is a primary source of evolution and adaptation.

Germline Cells

Cells that are involved in the reproduction process and give rise to gametes, carrying genetic information to the offspring.

Beneficial Mutations

Genetic changes that improve the survival or reproductive success of an organism in its environment.

Single Protein

A molecule composed of amino acids that performs a unique and specific function within the cell or organism.