1. A bicycle company buys inventory and pays cash of $10,000. It also buys a bicycle rack and pays $4,000. It pays $3,000 on a long-term liability and $500 in cash dividends. On a statement of cash flows, what should be listed as the cash outflow in connection with financing activities?

a. $500

b. $14,500

c. $4,000

d. $3,500

e. None of the above

12. Ricks 2020 net cash flow from operating activities was $600,000. Rick reported the following items on its financial statements for 2020:

Cash dividends	$32,000
Depreciation	26,000
Increase in accounts receivable	19,000

Ricks net income for 2020 was:

A) $556,000

B) $593,000

C) $632,000

D) $645,000

E) none of the answers are correct

13. Moter Inc. began operations in January 2020. Moter Inc. recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Moter Inc. recognizes income when it collects installment payments in cash from its customers.

In 2020, Moter Inc. had $500,000 of installment sales scheduled to be collected as follows:

2020	$	50	,000
2021		100	,000
2022		100	,000
2023		125	,000
2024		125	,000
	$	500	,000

Moter Inc. has a 15% income tax rate and that there were no other differences in income for financial statement and tax purposes.

Ignoring operating expenses, what deferred tax liability would Moter Inc. report in its year-end 2020 balance sheet?

A) $500,000

B) $67,500

C) $75,000

D) None of the answers are correct