1. A monthly income statement reported net income of $180,000. Inventory

for resale increased by $12,000. Accounts payable increased by

$9,000. Using only these three items, determine the net cash flow from

Operations.

2. Net income is $280,000; Depreciation expense is $38,000; Accounts receivable

decreased $2,400; Credit card receivables decreased $2,600; Prepaid

insurance increased $2,880; Inventory decreased $3,700; Accounts

payable increased $4,700; and other accrued payables decreased $3,600.

Complete net cash flow from operations activities.

3.Given the following information regarding investing and financing ac- tivities of an SCF, evaluate each of the given transactions and identify to which section, investing or financing, the transaction belongs. In addition, identify how the amount is handled. Use Increasefor posi- tive or Decreasefor negative for the cash flow adjustment.

Invest or Finance	Increase ( ) or Decrease ( )
		Purchased equipment
		Sold shares of equity stock
		Sold office furniture
		Purchased a long-term investment
		Declared and paid a cash dividend
		Repurchased equity stock
		Increased long-term debt

4. A restaurant purchased new kitchen equipment for $44,480. Old kitchen

equipment was sold for $1,200. A long-term investment was sold for

$50,000. Equity stock was bought back (repurchased) for $18,000, and

a cash dividend was paid in the amount of $36,600. The company increased

its long-term debt by $60,000.

a. Determine the net cash flow from investing activities.

b. Determine the net cash flow from financing activities.

5. The following is provided to complete the operating activities section of the cash flow statement.

a statement of cash flows.

a. Net income for the year is $43,900.

b. Accounts receivable increased by $10,420.

c. Inventory increased by $1,875.

d. Depreciation expense for the year is $8,000.

e. Accounts payable decreased by $5,782.

f. Other current liabilities increased by $3,500.

g. Taxes payable decreased by $1,970.