Mars Chemicals Company Uses the Indirect Method to Prepare Its

question 160

Multiple Choice

Mars Chemicals Company uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:

Net Income for the year was $57,000.
Which of the following statements is true of Taylor's statement of cash flows for 2016?

• A)The company issued stocks for $32,000.
• B)The company declared $56,000 as dividends.
• C)The company purchased treasury stock for $8,200.
• D)The net cash flow from financing activities is $178,800.

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Definitions:

Extraction Cost

The expenses associated with the removal of raw materials from the earth, such as mining or drilling.

User Cost

The cost associated with the use of a service or the depletion of a capital good.

Fishery

An area with a naturally occurring population of aquatic species which can be harvested for economic purposes.

Marine Animal

An animal that inhabits the ocean or other marine environments.