Use This Information to Answer the Following Question

question 67

Multiple Choice

Use this information to answer the following question. Northbrook Corporation is preparing a statement of cash flows.The following transactions occurred during the year:
1) Sold machinery for $9,000 cash.
2) Purchased a building for $80,000 cash.
3) Issued $70,000 worth of stock to acquire an airplane.
4) Converted long-term bonds by issuing $100,000 worth of stock.
5) Declared and paid a $10,000 cash dividend.
-Transaction 1 would be found on the statement of cash flows in the

• A)cash flows from operating activities section.
• B)cash flows from financing activities section.
• C)noncash investing and financing transactions section.
• D)cash flows from investing activities section.

---

Definitions:

Annual Property Taxes

Taxes that property owners must pay each year, typically based on the assessed value of their real estate property.

Maintenance Expenses

Costs incurred to keep an asset in working condition or to restore it to its operational status; these are necessary for ensuring the asset's longevity and efficiency.

Appraisal Value

Appraisal value is an estimation of the value of a property, usually performed by a professional appraiser, based on analysis and comparison to similar property transactions.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.