1. Adah Corporation prepares its statement of cash flows using the indirect method. Which of the following would be subtracted from net income in the operating activities section of the statement?

	Decrease in Accounts Receivable	Decrease in Inventory
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

Multiple Choice

• Choice A

• Choice B

• Choice C

• Choice D

2. The following transactions occurred last year at Jolly Corporation:

Issuance of shares of the company's own common stock	$	120,000
Dividends paid to the company's own shareholders	$	1,000
Sale of long-term investment	$	7,000
Interest paid to lenders	$	13,000
Retirement of the company's own bonds payable	$	60,000
Proceeds from sale of the company's used equipment	$	8,000
Purchase of property	$	170,000

Based solely on the above information, the net cash provided by (used in) financing activities for the year on the statement of cash flows would be:

Multiple Choice

• $179,000

• $59,000

• $(109,000)

• $46,000