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QUESTION 9 What will be the increase in the Paid-in capital in excess of par account if a corporation issues 20,000 shares of $1.00 par common stock for S6 per share? 1. $20,000 2. $120,000 3. $140,000 4. $100,000 QUESTION 10 A company acquired land by issuing its common stock. How should this transaction be disclosed when a statement of cash flows is prepared? 1. In a separate section of the statement of cash flows. 2. The acquisition of land should be reported as an investing activity and the issuance of the stock as a financing activity. 3. In a supplemental schedule of noncash investing and financing activities or in a note. 4. The transaction does not need to be disclosed. QUESTION 11 Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenue and expenses? 1. the indirect method 2. the direct method 3. Both the direct and indirect methods 4. Neither the direct method nor the indirect method QUESTION 12 La Paz Restaurants Selected data from the company's financial statements are presented below: Net income Cash dividends paid on common stock Year-end market price per share of common stock 2020 $110,000 $21,000 $12.00 2019 $123,000 $38,000 $13.00 Shares of common stock outstanding 140,000 140,000 Refer to the information presented above for La Paz Restaurants. The 2020 dividend yield ratio is reported as 1.1.25%. 2.0.057% 3.2.09% 4.1.59%

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