1. In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net income	$	67,000
Accounts payable increased by		19,500
Accounts receivable decreased by		26,500
Inventories increased by		8,000
Depreciation expense		34,500

Net cash provided by operating activities was:

Multiple Choice

• $139,500.

• $70,500.

• $86,500.

• $102,500.

• $155,500.

2. A company's income statement showed the following: net income, $122,000; depreciation expense, $34,000; and gain on sale of plant assets, $8,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $10,200; merchandise inventory increased $22,000; prepaid expenses increased $7,000; accounts payable increased $4,200. Calculate the net cash provided or used by operating activities.

Multiple Choice

• $145,400.

• $147,400.

• $173,400.

• $133,400.

• $152,200.