1.

A company reported that its bonds with a par value of $50,000 and a carrying value of $59,500 are retired for $63,000 cash, resulting in a loss of $3,500. The amount to be reported under cash flows from financing activities is:

$(3,500).

$(59,500).

$(9,500).

$9,500.

$(63,000).

2.

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income	$ 86,700
Depreciation expense	13,400
Gain on sale of land	6,900
Increase in merchandise inventory	3,450
Increase in accounts payable	7,550

$31,200.

$15,600.

$38,100.

$97,300.

$16,600.

3.

The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$168,000
Cash dividends declared for the year	$52,800
Net income for the year	$100,500

What is the ending balance for retained earnings?

$289,500.

$14,700.

$268,500.

$215,700.

$115,200.

4.

Scranton, Inc. reports net income of $242,000 for the year ended December 31. It also reports $92,900 depreciation expense and a $5,600 gain on the sale of equipment. Its comparative balance sheet reveals a $37,900 decrease in accounts receivable, a $16,950 increase in accounts payable, and a $13,300 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

$397,450.

$370,850.

$376,450.

$336,950.

$277,850.

5.

Use the following information to calculate cash paid for income taxes:

Income tax expense	$60,000
Income tax payable, January 1	14,200
Income tax payable, December 31	17,000

$28,800.

$74,200.

$77,000

$57,200.

$60,000.