In Preparing a Company's Statement of Cash Flows for the Most

question 106

Multiple Choice

In preparing a company's statement of cash flows for the most recent year, the following information is available: Loss on the sale of equipment $ 14,000
Purchase of equipment $145,000
Proceeds from the sale of equipment $126,000
Repayment of outstanding bonds $ 87,000
Purchase of treasury shares $ 62,000
Issuance of ordinary shares $ 96,000
Purchase of land $115,000
Increase in accounts receivable during the year $ 43,000
Decrease in accounts payable during the year $ 75,000
Payment of cash dividends $ 35,000
Net cash flows from investing activities for the year were:

• A) $134,000 of net cash used by investing activities.
• B) $134,000 of net cash provided by investing activities.
• C) $120,000 of net cash used by investing activities.
• D) $252,000 of net cash used by investing activities.
• E) $221,000 of net cash provided by investing activities.

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Definitions:

Information Technology

Applying computers, storage units, network systems, and other tangible tools, infrastructures, and techniques to produce, process, secure, and exchange any kind of electronic data.

Contingency Thinking

An approach that considers various possible futures or outcomes and prepares strategies accordingly.

Environmental Differences

Variations in the external surroundings that can influence an organization's operations, including cultural, economic, political, and technological factors.

Human Resources Thinking

A perspective that emphasizes the strategic management of people within an organization to achieve competitive advantage.