Question

1. Flynn Co. reported sales of $250,000. If accounts receivable decreased $10,000 during the year:
   1. Sales is greater than cash collected
   2. Cash collected is greater than sales
   3. Cash collected is the same as sales
   4. None of the above

2. Refer to the previous question. The amount of cash collected is:

3. Use the following to determine the cash flows provided by or used in investing activities:

• Net income is $145,000, including a gain on the sale of building of $25,000.
• The equipment cost $23,000, had a book value of $12,000 at the time of sale, and was sold for $17,000.
• The company purchased land for $25,000

1. net cash provided, $170,000
2. net cash used, $8,000
3. net cash used, $25,000
4. net cash provided, $25,000
5. net cash provided, $23,000

Use the information below to answer the following three (3) questions:

During 2005, XYZ Company sold equipment for $5,000. The equipment cost $20,000 and had accumulated depreciation of $12,000 at the time of sale.

4. The sale resulted in a:
   1. Gain
   2. Loss

5. The amount of the gain or loss is:

6. In a statement of cash flows:
   1. $20,000 is added to the investing activities section
   2. $20,000 is added to the operating activities section
   3. $5,000 is added to the investing activities section
   4. $5,000 is deducted from the investing activities section
   5. None of the above

Answer 1