1. Alcoser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Cash and cash equivalents	$	34		$	29
Accounts receivable		32			36
Inventory		53			66
Property, plant, and equipment		554			480
Less accumulated depreciation		208			206
Total assets	$	465		$	405
Liabilities and stockholders' equity:
Accounts payable	$	41		$	50
Accrued liabilities		17			16
Income taxes payable		28			30
Bonds payable		217			200
Common stock		75			70
Retained earnings		87			39
Total liabilities and stockholders' equity	$	465		$	405

Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) financing activities for the year was:

Multiple Choice

• $10

• $5

• $(12)

• $17

2. Krech Corporation's comparative balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$	31,000		$	28,000
Accounts receivable		18,000			20,000
Inventory		58,000			56,000
Prepaid expenses		12,000			10,000
Total current assets		119,000			114,000
Property, plant, and equipment		374,000			354,000
Less accumulated depreciation		190,000			165,000
Net property, plant, and equipment		184,000			189,000
Total assets	$	303,000		$	303,000
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	13,000		$	9,000
Accrued liabilities		52,000			53,000
Income taxes payable		67,000			69,000
Total current liabilities		132,000			131,000
Bonds payable		76,000			73,000
Total liabilities		208,000			204,000
Stockholders equity:
Common stock		28,000			26,000
Retained earnings		67,000			73,000
Total stockholders equity		95,000			99,000
Total liabilities and stockholders' equity	$	303,000		$	303,000

The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.

Which of the following is correct regarding the operating activities section of the statement of cash flows?

Multiple Choice

• The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income

• The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income

• The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income

• The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

3. Financial statements of Rukavina Corporation follow:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Cash and cash equivalents	$	25		$	22
Accounts receivable		79			73
Inventory		36			32
Property, plant, and equipment		543			490
Less accumulated depreciation		328			300
Total assets	$	355		$	317
Liabilities and stockholders' equity:
Accounts payable	$	41		$	54
Bonds payable		100			120
Common stock		79			73
Retained earnings		135			70
Total liabilities and stockholders' equity	$	355		$	317

Income Statement
Sales	$	710
Cost of goods sold		455
Gross margin		255
Selling and administrative expense		136
Net operating income		119
Income taxes		42
Net income	$	77

Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) investing activities for the year was:

Multiple Choice

• $(53)

• $53

• $(12)

• $12