1. In preparing a company's statement of cash flows for the most recent year, the following information is available:

Loss on the sale of equipment	$	16,000
Purchase of equipment		165,000
Proceeds from the sale of equipment		146,000
Repayment of outstanding bonds		97,000
Purchase of treasury stock		72,000
Issuance of common stock		106,000
Purchase of land		135,000
Increase in accounts receivable during the year		53,000
Decrease in accounts payable during the year		85,000
Payment of cash dividends		45,000

Net cash flows from investing activities for the year were:

Multiple Choice

• $251,000 of net cash provided.

• $138,000 of net cash used.

• $292,000 of net cash used.

• $154,000 of net cash provided.

• $154,000 of net cash used.

2. A machine with a cost of $149,000 and accumulated depreciation of $104,000 is sold for $59,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Multiple Choice

• Zero. This is a financing activity.

• $14,500.

• $59,500.

• Zero. This is an operating activity.

• $45,000.

3. A company reported that its bonds with a par value of $50,000 and a carrying value of $59,500 are retired for $63,000 cash, resulting in a loss of $3,500. The amount to be reported under cash flows from financing activities is:

Multiple Choice

• $(3,500).

• $(9,500).

• $(63,000).

• $9,500.

• $(59,500).