1.

Dooling Corporation's balance sheet and income statement appear below:

Dooling Corporation Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$ 42	$ 43
Accounts receivable	75	74
Inventory	54	52
Total current assets	171	169
Property, plant and equipment	612	515
Less: accumulated depreciation	243	276
Net property, plant and equipment	369	239
Total assets	$540	$408
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$ 49	$ 53
Accrued liabilities	26	25
Income taxes payable	54	58
Total current liabilities	129	136
Bonds payable	61	55
Total liabilities	190	191
Stockholder's equity:
Common stock	36	35
Retained earnings	314	182
Total stockholder's equity	350	217
Total liabilities and stockholders' equity	$540	$408

Income Statement
Sales	$830
Cost of goods sold	491
Gross margin	339
Selling and administrative expenses	142
Net operating income	197
Gain on sale of plant and equipment	25
Income before taxes	222
Income taxes	67
Net income	$ 155

Cash dividends were $23. The company sold equipment for $43 that was originally purchased for $23 and that had accumulated depreciation of $5. The net cash provided by (used in) investing activities for the year was:

	$(120)
	$(77)
	$77
	$43

2.

Cezar Corporation's comparative balance sheet appears below:

Cezar Corporation
	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$ 54,000	$ 36,000
Accounts receivable	18,000	26,000
Inventory	64,000	56,000
Total current assets	136,000	118,000
Property, plant, and equipment	386,000	360,000
Less accumulated depreciation	188,000	156,000
Net property, plant, equipment	198,000	204,000
Total assets	$334,000	$322,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 14,300	$ 16,000
Accrued liabilities	48,500	56,000
Income taxes payable	53,000	46,000
Total current liabilities	115,800	118,000
Bonds payable	79,000	76,000
Total liabilities	194,800	194,000
Stockholders' equity:
Common stock	34,000	36,000
Retained earnings	105,200	92,000
Total stockholders' equity	139,200	128,000
Total liabilities and stockholders' equity	$334,000	$322,000

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $17,000 and its cash dividends were $3,800. The company did not issue any bonds payable or purchase any of its own common stock during the year. Its net cash provided by operating activities and net cash used in financing activities are:

	A - net cash provided by operating activities, $46,800; net cash used in financing activities,$2,800
	B - net cash provided by operating activities, $46,800; net cash used in financing activities,$6,800
	C - net cash provided by operating activities, $40,000; net cash used in financing activities,$2,800
	D - net cash provided by operating activities, $40,000; net cash used in financing activities,$6,800