Answer the following statements true (T) or false (F)
1. The total change in cash should equal the net income for the period.
2. For the year ended December 31, 2019, the Statement of Cash Flows for Mississippi Family Auto Supply shows the following information: Net Cash Used by Operating Activities, $(74,000); Net Cash Provided by Investing Activities, $49,000; and Net Cash Provided by Financing Activities, $45,000. Cash has increased by $168,000.
3. The third section presented on the statement of cash flows is the non-cash operating activities section.
4. A debtor of Adams Company owes $500,000 but does not have enough cash to repay the debt. Following lengthy negotiations, the parties agreed that the debtor will issue 200,000 shares of common stock to settle the debt. This transaction will be reported in the investing activities section of the statement of cash flows for Adams Company.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
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