Chapter 14
19.) Free cash flow equals cash provided by
a.) operations less capital expenditures and cash dividends
b.) operations less cash dividends
c.) investing activities less capital expenditures and cash dividends
d.) operations less capital expenditures
20.) Boxer company issued common stock for proceeds of $124,000 during 2015. The company paid dividends of $22,000 and issued a long term note payable for $30,000 in exchange for equipment during the year. The company also sold treasury stock that had the cost of $5,000 for $7,000. The financing section of the statement of cash flows will report
a.) net cash inflows of $109,000
b.) net cash flow inflows of $139,000
c.) net cash outflows of $107,000
d.) net cash outflows of $191,000
Chapter 11
4.) The current portion of long term debt should
a.) be paid immediately
b.) be reclassified as a current liability
c.) be classified as a long term liability
d.) not be sepperated from the long-term portion of debt
17.) When authorizing bonds to be issued the board of directors does not specify the
a.) total number of bonds authorized to be sold
b.) contractual interest rate
c.) selling price
d.) total face value of bonds
