Taylor Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Note: Net Income for the year was $56,000. Which of the following statements is true of Taylor's statement of cash flows for the year 2014?
A)The company issued stocks worth $30,000 during the year 2014.
B)The company declared $52,000 as dividends during the year 2014.
C)The company purchased treasury stock worth $8,000 during the year.
D)The net cash flow from financing activities amounts to $176,000.

Question

Taylor Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:  Note: Net Income for the year was $56,000. Which of the following statements is true of Taylor's statement of cash flows for the year 2014?
A)The company issued stocks worth $30,000 during the year 2014. 
B)The company declared $52,000 as dividends during the year 2014. 
C)The company purchased treasury stock worth $8,000 during the year. 
D)The net cash flow from financing activities amounts to $176,000.

Quizplus · Accepted Answer

The Answer of Taylor Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:  Note: Net Income for the year was $56,000. Which of the following statements is true of Taylor's statement of cash flows for the year 2014?
A)The company issued stocks worth $30,000 during the year 2014. 
B)The company declared $52,000 as dividends during the year 2014. 
C)The company purchased treasury stock worth $8,000 during the year. 
D)The net cash flow from financing activities amounts to $176,000.

Taylor Company Uses the Indirect Method to Prepare Its Statement