1. As a $180,000 debit to prepaid insurance.
  2. As a $60,000 debit to insurance expense.
  3. As a $60,000 debit to insurance expense, a $120,000 debit to prepaid asset, and $180,000 credit to retained earnings.
  4. As a $180,000 debit to insurance expense, a $120,000 credit to prepaid asset, and $60,000 credit to retained earnings.

Proceeds from sale of investments                             $80,000
Purchase of property, plant and equipment             $10,000
Proceeds from long-term debt                                  $100,000
Loss on sale of investment                                             $5,000

What amount should be reported as net cash provided by financing activities in Box’s statement of cash flows?

  1. $70,000
  2. $75,000
  3. $80,000
  4. $100,000

Strut’s                                                  Plane’s consolidated
balance sheet                                              balance sheet

  1. Yes                                                                     Yes
  2. Yes                                                                     No
  3. No                                                                      Yes
  4. No                                                                      No

  1. $15,000 cash inflow from financing activities.
  2. $10,000 cash inflow from financing activities and $5,000 adjustment to arrive at cash flows from operating activities.
  3. $15,000 cash flow from investing activities.
  4. $10,000 cash flow from investing activities and $5,000 adjustment to arrive at cash flows from operating activities.

 …

Net income                              Other comprehensive income

  1. $100,000                                                      $0
  2. $75,000                                                   $25,000
  3. $25,000                                                   $75,000
  4. $0                                                             $75,000