1. Foster Company reported a net loss of $10,000 for the year ended December 31, 2012. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2012, operating activities(pick one)

used net cash of $2,000.

used net cash of $8,000.

provided net cash of $2,000.

Provided net cash of $8,000.

2.

If $240,000 of bonds are issued during the year but $400,000 of old bonds are retired during the year, the statement of cash flows will show a(n) (pick one)

net increase in cash of $160,000.
	net decrease in cash of $160,000.
	increase in cash of $240,000 and a decrease in cash of $400,000.
	net loss on retirement of bonds of $160,000.