1) Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year. Accounts Payable relates solely to the purchase of merchandise. Sales on account were $532,100 and cost of goods sold was $358,000. The total purchases of merchandise for the period were: A.$358,000 B.$174,100 C.$403,000 D.$313,000

2)The operating activities section of an indirect method statement of cash flows includes:

A.cash paid for inventory

B.changes in current asset balances

C.cash paid for operating expenses

D.cash received from customers

3) Using the indirect method of preparing a statement of cash flows, depreciation expense for the current year is:

A.added in the operating activities section

B.added in the investing activities section

C.added in the financing activities section

D.subtracted in the operating activities section

4)When calculating cash flow from operations, an increase in prepaid expenses would be added in to the cash flow. True False

5)Using the indirect method of preparing a statement of cash flows, a loss on the sale of a capital asset is:

A.added in the investing activities section

B.ignored

C.added in the operating activities section

D.subtracted in the operating activities section