1. Changes in which of the following are included in financing activities of the statement of cash flows?

A.Accounts receivable

B.Intangible assets

C.Preferred stock

D.Discount on bonds payable

2.

Bay Inc. reported net income of $1,500,000. Bay Inc. had 136,000 common shares outstanding at the beginning of the year. The company repurchased 80,000 treasury shares on July 1. Bay also issued 42,000 shares of $60 par/share, 3% convertible preferred shares on October 1 of the current year. Bay Inc. did not declare dividends on these preferred shares. Each preferred share is convertible into 10 common shares . What is Bays diluted EPS? (Round your answer to the nearest cent.)

3.

Bay Inc. had 485,000 common shares outstanding at the beginning of the year. On September 1, Bay issued 120,000 common shares. On October 1, the company repurchased 60,000 of the newly issued shares. Bay also had $525,000 par, 3%, nonconvertible, noncumulative preferred shares outstanding for the entire year. The company declared dividends on these preferred shares. Bay reported $400,000 net income. Compute Bay's basic earnings per share for the year. Round your answer to the nearest cent.