1) A companys long-term investments have a beginning balance of $100,000 and an ending balance of $60,000. The companys income statement reports a gain on sale of long-term investments of $10,000. How much cash was received from the sale of long-term investments if no additional investments were purchased in the period.

Select one:

a. $40,000

b. $60,000

c. $30,000

d. $50,000

2) A decrease in long-term debt from one year to the next:

Select one:

a. Increases cash flow

b. Does not affect cash flow

c. Decreases cash flow

d. None of the choices