21. The statement of cash flows includes all of the following categories EXCEPT (a) operating flows. (b) investment flows. (c) financing flows. (d) equity flows. 22. The statement of cash flows provides a summary of the firm’s (a) cash flows from operations. (b) cash inflows from financing. (c) investment cash flows. (d) changes in the cash and marketable security accounts. (e) all of the above. 23. All of the following are inflows of cash EXCEPT (a) a decrease in accounts receivable. (b) net profits after taxes. (c) dividends. (d) an increase in accruals. 24. All of the following are outflows of cash EXCEPT (a) an increase in inventory. (b) a decrease in cash. (c) dividends. (d) a decrease in notes payable. 25. Three important components of the statement of cash flows that must be obtained from the income statement include are all of the following EXCEPT (a) depreciation and any non-cash charges. (b) interest expenses. (c) net profits after taxes. (d) cash dividends paid on both preferred and common stocks. 26. Cash flows directly related to production and sale of the firm’s products and services are called (a) operating flows. (b) investment flows. (c) financing flows. (d) None of the above. 27. Cash flows associated with the purchase and sale of fixed assets and business interests are called (a) operating flows. (b) investment flows. (c) financing flows. (d) None of the above. 28. Cash flows that result from debt and equity financing transactions including incurrence and repayment of debt cash inflows from the sale of stock and cash outflows to pay cash dividends or repurchase stock are called (a) operating flows. (b) investment flows. (c) financing flows. (d) None of the above. 29. Johnson Inc. has just ended the calendar year making a sale in the amount of $10 000 of merchandise purchased during the year at a total cost of $7 000. Although the firm paid in full for the merchandise during the year it has yet to collect at year end from the customer. The net profit and cash flow for the year are (a) $3 000 and $10 000 respectively. (b) $3 000 and –$7 000 respectively. (c) $7 000 and –$3 000 respectively. (d) $3 000 and $7 000 respectively. 30. A firm has just ended the calendar year by selling $150 000 worth of merchandise that was purchased during the year at a cost of $112 500. Although the firm paid in full for the merchandise during the year it has yet to collect on the sale at year end. The net profit and cash flow for the year are (a) $0 and $150 000 respectively. (b) $37 500 and – $150 000 respectively. (c) $37 500 and – $112 500 respectively. (d) $150 000 and $112 500 respectively.
