1. During 2008, Bakery Company paid out $100,000 of common dividends. It ended the year with $300,000 of retained earnings versus the prior year's retained earnings of $200,000. How much net income did the firm earn during the year?*

$ 200,000

$ 400,000

$ 600,000

$ 500,000

None of the above

2. For the year ended December 31, 2008, a corporation had cash flow from operating activities of $20,000, cash flow from investing activities of $60,000, and cash flow from financing activities of $20,000. What is the net cash flow during the year ?*

$20,000

$40,000

$100,000

$120,000

None of the above

3. CIC Co. has $64,000 of net cash at the end of year 2019. The cash flow from investing activities is $-52,000. The Company borrowed a long term loan of 50,000. If the accounts receivable increased by $49,000 and the accounts payable increased by $61,000, and the depreciation is $12,000, what is the company's net income?*

$43,500

$42,000

$66,000

$54,000

None of the above