Question

47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported on the income statemen other income. On the statement of cash flows, what amount should be reported as an investing activity from sale of land? A) $155,000 B) $355,000. C) $310,000. D) $230,000 48. In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) A) subtraction from net income. B) addition to net income. C) addition to cash flow from investing activities. D) subtraction from cash flow from investing activities. 49. Comparisons of company data with industry averages provide information about a company's relative position within the industry. A) True B) False 50. Intracompany comparisons of the same financial statement items are often useful to detect changes in financial relationships and significant trends. A) True B) False

Answer 1

47)	The cash flow from the sale of land is a cash flow form financial activities.
	The whole amount of cash flow shall be taken into consideration.
	Therefore
	Correct Option:B
48)	The sale of equipment is an investing activity.
	How while calculating net income loss on the sale of equipment would have
	been deducted from income hence it needs to be added to arrive
	correct cash flow from operating activities.
	Correct Option: B
49)	TRUE
	Because it relates to the industry line by line basis.
50)	TRUE.