1.
25. Cash dividends of $80,088 were declared during the year. Cash dividends payable were
$11,204 and $16,001 at the beginning and end of the year, respectively. Determine the amount of
cash for the payment of dividends during the year.
Select the correct answer.
15. The net income reported on the income statement for the current year was $277,891.
Depreciation recorded on fixed assets and amortization of patents for the year were $43,031 and
$10,090, respectively. Balances of current asset and current liability accounts at the end and at
the beginning of the year are as follows:
What is the amount of cash flows from operating activities reported on the statement of cash
flows prepared by the indirect method?
Select the correct answer.
a. $80,088
b. $68,884
c. $96,089
d. $75,291
Solution
Q25. Answer (d)
(80088+11204-16001) = 75291
Q15 Answer (d)
Income 277891
Depreciation 43031
Patent Amortisatiob 10090
Increase in Accounts Receivable -19806

2.
Increase in Inventory -9871
Decrease in Prepaid Expenses 3982.00
Decrease in Acounts Payable -29165
Cash From Operation 276152