1. Blue Co.s worksheet for the preparation of its year 8 statement of cash flows included the following:

	December 31	January 1
Accounts Receivable, before any allowance	$19,000	$15,000
Allowance for uncollectible Accounts	650	400
Prepaid insurance expense	5,200	8,300
Accounts Payable	12,600	9,800

Blues year 8 net income is $125,000. What amount should Blue include as net cash provided by operating activities in the statement of cash flows?

A. $120,950

B. $125,000

C. $126,650

D. $127,150

2. Liberty Corporation had net income of $120,000 during the year. Depreciation expense was $6,000. The following information is available:

Held-to-maturity Bonds Purchased	25,000 Increase
Common Stock Issued	70,000 Increase
Accounts Receivable	10,000 Decrease
Accounts Payable	15,000 Increase
Gain on sale of AFS Investment	5,000 Increase

What amount should Liberty report as net cash provided by operating activities in its statement of cash flows for the year?

A. $146,000

B. $10,000

C. $20,000

D. $30,000