Question

QUESTION 23 Which of the following would be classified as a financing activity on a statement of cash flows? Declaration and distribution of a stock dividend Sale of equipment O Payment of interest to a creditor Payment of a bond payable QUESTION 24 Net cash flow from operating activities for 2021 for Light Corporation was $990,000. The following items are reported on the financial statements for 2021: Depreciation and amortization Cash dividends paid on common stock $ 60,000 36,000 Increase in accounts receivable 72,000 Based only on the information above, Light's net income for 2021 was: $858,000. $882,000. $978,000 $1,002,000.

Answer 1

23.

Payment of bonds payable would be classified as a financing activity on a statement of cash flows.

Fourth option is Correct option .

24.

Net cash flows from operating activities = $990,000

Depreciation and amortization = $60,000

Cash dividend paid on common stock = $36,000

Increase in accounts payable = $72,000

Net cash flow from operating activities =  Net income + Depreciation and amortization-Increase in accounts payable

990,000 = Net income + 60,000-72,000

Net income = 1,002,000

Fourth option is correct option.

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