Exhibit 21-3 the Travis Company Uses the Spreadsheet Method for Completing

question 89

Multiple Choice

Exhibit 21-3 The Travis Company uses the spreadsheet method for completing the statement of cash flows. The balance sheet accounts and other information related to those accounts are presented below for Travis Company: Additional information related to 2015 activities:
1.Net loss for 2015 was $40,000.
2.Cash dividends of $12,000 were declared and paid in 2015.
3.4,000 shares of common stock were issued to bondholders converting bonds payable into common stock.
4.A long-term investment was sold for $100,000 cash.
5.Equipment costing $100,000 and having accumulated depreciation of $30,000 was sold for $50,000 cash.
-Refer to Exhibit 21-3. Net cash provided (used) in the operating activities section of Travis's 2015 statement of cash flows was

• A) $(40,000)
• B) $ 50,000
• C) $ 52,000
• D) $ 56,000

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Definitions:

Auto Parts Manufacturer

A company engaged in the production of components used in the assembly or repair of automobiles.

Performance-Based Pay

A compensation strategy where employees' pay is based on their performance, often measured by predetermined goals or benchmarks.

USPS

The United States Postal Service, an independent agency of the federal government responsible for providing postal service in the United States.

Top-Level Managers

Executives responsible for overseeing the strategic direction and decision-making of an entire organization, ensuring its long-term success and growth.