$1.$ Krech Corporation's comparative balance sheet appears below:

Comparative Balance Sheet

Ending Balance Beginning Balance

Assets:

Current assets:

Cash and cash equivalents $ $31,000$ $ $28,000$

Accounts receivable $18,00020,000$

Inventory $58,00056,000$

Prepaid expenses $12,00010,000$

Total current assets $119,000114,000$

Property, plant, and equipment $374,000354,000$

Less accumulated depreciation $190,000165,000$

Net property, plant, and equipment $184,000189,000$

Total assets $ $303,000$ $ $303,000$

Liabilities and stockholders' equity:

Current liabilities:

Accounts payable $ $13,000$ $ $9,000$

Accrued liabilities $52,00053,000$

Income taxes payable $67,00069,000$

Total current liabilities $132,000131,000$

Bonds payable $76,00073,000$

Total liabilities $208,000204,000$

Stockholders$$ equity:

Common stock $28,00026,000$

Retained earnings $67,00073,000$

Total stockholders$$ equity $95,00099,000$

Total liabilities and stockholders' equity $ $303,000$ $ $303,000$

The company's net income $($loss$)$ for the year was $($$$3,000)$ and its cash dividends were $$3,000.$ It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.

Which of the following is correct regarding the operating activities section of the statement of cash flows?

Multiple Choice

$$ The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

$$ The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income

$$ The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income

$$ The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income

$2.$ Kaeser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet

Ending Balance Beginning Balance

Assets:

Current assets:

Cash and cash equivalents $ $44$ $ $36$

Accounts receivable $5460$

Inventory $3237$

Total current assets $130133$

Property, plant, and equipment $527460$

Less accumulated depreciation $339289$

Net property, plant, and equipment $188171$

Total assets $ $318$ $ $304$

Liabilities and stockholders' equity:

Current liabilities:

Accounts payable $ $46$ $ $41$

Accrued liabilities $2017$

Income taxes payable $2629$

Total current liabilities $9287$

Bonds payable $145180$

Total liabilities $237267$

Stockholders$$ equity:

Common stock $3130$

Retained earnings $507$

Total stockholders$$ equity $8137$

Total liabilities and stockholders' equity $ $318$ $ $304$

The company's net income for the year was $$52$ and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $$9.$ The net cash provided by $($used in$)$ investing activities for the year was:

Multiple Choice

$($$$67)$

$($$$17)$

$$ $$17$

$$ $$67$

Alcoser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet

Ending Balance Beginning Balance

Assets:

Cash and cash equivalents $ $34$ $ $29$

Accounts receivable $3236$

Inventory $5366$

Property, plant, and equipment $554480$

Less accumulated depreciation $208206$

Total assets $ $465$ $ $405$

Liabilities and stockholders' equity:

Accounts payable $ $41$ $ $50$

Accrued liabilities $1716$

Income taxes payable $2830$

Bonds payable $217200$

Common stock $7570$

Retained earnings $8739$

Total liabilities and stockholders' equity $ $465$ $ $405$

Net income for the year was $$60.$ Cash dividends were $$12.$ The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by $($used in$)$ investing activities for the year was:

Multiple Choice

$$ $$(74)$

$$ $$74$

$$ $$72$

$$ $$(72)$