[SuenaNAZ]

We have several students puzzled by this example: please help to find the answer?

Of these items which would effect the operating activities section of a net cash report

Cash dividends of $600,000 were declared and paid in 2008
Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2008 for $360,000
Long term investment sold in 2008 $320,000, no other activities made within the year
20,000 shares of common stock were issued in 2008 for $25 a share
Short-term investments consist of treasury bills maturing on 6/30/09


Net income was given for 2008 at $1,500,000

Answer would be a) 1,500,000 b) 2,120,000 c) 2,080,000 or d) 2,160,000

Any help would be greatly appreciated

[morgaine300]

Where are you at? I'm assuming a "net cash report" is what I'd call a cash flow statement.

I also don't understand how the question can ask which of the following affect the operating activities, and the choices of answers are dollar amounts. Huh?

None of the activities are operating.

Here's another of my posts with some explanation of the differences between activities:
https://www.askmehelpdesk.com/financ...ing+activities