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In Order to Prepare the Statement of Cash Flows for Rag

question 117

Multiple Choice

In order to prepare the statement of cash flows for Rag Dolls Corporation for 2014, the accountant has compiled the following data regarding cash flows:
$\begin{array}{llr} \text {Cash paid to acquire equity securities. } &\$370,000\\ \text { Proceeds from sale of equity securities } &17,500\\ \text { Proceeds from issuance of ordinary shares} &280,000\\ \text {Proceeds from issuance of bonds payable. } &55,000\\ \text { Payments to settle short-term debt} &32,500\\ \text { Interest and dividends received } &10,000\\ \text { Cash receipts from customers} &?\\ \text { Dividends paid } &130,000\\ \text { Cash paid to suppliers and employees } &1,030,000\\\text { Interest paid }&70,000\\ \text { Income taxes paid } &25,000\\ \text { Cash and cash equivalents,1January, 2014 } &43,000\\\text { Cash and cash equivalents, } 31 \text { December } 2014 &58,000\end{array}$

Using the above information, indicate the best answer for each question in the space provided. (Assume interest and dividends received and paid are classified as operating activities)

-Rag Dolls' cash flow from operating activities during 2014 is:

Definitions:

Consumption Possibilities

The range of goods and services that a consumer can afford to purchase at a given level of income and prices.

Trade

The exchange of goods and services between individuals or entities, typically in an attempt to benefit from differences in cost or value.

Trade-off

A situation that involves losing one quality, aspect, or amount of something in return for gaining another quality, aspect, or amount.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, representing the trade-offs of producing one good over another.