1. Where would cash collected from customers appear on the statement of cash flows?
a. Operating section
b. Investing section
c. Financing section
d. Supplemental schedule
2. Fritz Corporation began the year with $900,000 in accounts receivable. During the year, revenue totaled $7,000,000. Fritz ended the year with $750,000 in accounts receivable. How much cash did Fritz collect from customers during the year?
a. $750,000
b. $7,150,000
c. $6,850,000
d. $900,000
3. Where would the redemption of bonds payable appear on the statement of cash flows?
a. Operating section
b. Investing section
c. Financing section
d. Supplemental schedule
4. During the year, Rafael Corporation paid dividends of $23,000, received cash by signing a note payable of $105,000, purchased a piece of equipment for $29,400 and received dividend income of $12,000. What would be Rafael’s cash flow from financing activities for the year?
a. $64,600
b. $82,000
c. $52,600
d. $94,000