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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