1) Laser World's income statement reported total revenues, $880,000 and total expenses (including $40,000 depreciation) of $730,000. The balance sheet reported the following: Accounts Receivablebeginning balance, $57,000 and ending balance, $60,000; Accounts Payablebeginning balance, $26,500 and ending balance, $32,500. Therefore, based only on this information, the net cash flows from operating activities were:

A) $187,000.

B) $181,000.

C)$153,000.

D) $193,000.

2) During the year, Next Tec Corp. had the following cash flows: receipt from customers, $19,000; receipt from the bank for long-term borrowing, $7,100; payment to suppliers, $5,200; payment of dividends, $1,700, payment to workers, $2,800; and payment for machinery, $10,000. What amount would be reported for net financing cash flows on the Statement of Cash Flows?

A) $4,900

B) $7,100

C) ($10,000)

D) $5,400

3) Bad Brad's BBQ had cash flows for the year as follows ($ in millions):

CASH RECEIVED FROM:
Customers	$ 2,800
Interest on investments	250
Sale of land	80
Sale of common stock	580
Issuance of debt securities	2,500
CASH PAID FOR:
Interest on debt	$280
Income tax	130
Debt principal reduction	1,450
Purchase of equipment	4,500
Purchase of inventory	950
Dividends on common stock	300
Operating expenses	750

Bad Brad's would report net cash inflows (outflows) from operating activities in the amount of:

A) $1,220.

B) $(1,070) .

C) $640.

D) $940.

4) Bad Brad's BBQ had cash flows for the year as follows ($ in millions):

CASH RECEIVED FROM:
Customers	$ 2,800
Interest on investments	250
Sale of land	110
Sale of common stock	580
Issuance of debt securities	2,100
CASH PAID FOR:
Interest on debt	$ 300
Income tax	120
Debt principal reduction	1,650
Purchase of equipment	3,300
Purchase of inventory	700
Dividends on common stock	290
Operating expenses	700

Bad Brad's would report net cash inflows (outflows) from investing activities in the amount of:

A. $(3,190).

B. $110.

C. $(1,090).

D. $(3,300).

5. A company's Income Tax Payable account decreased from $18 million to $17 million during the year. If its income tax expense was $112 million, what would be shown as cash paid for income taxes under the direct method?

A) A cash outflow of $113 million.

B) A cash outflow of $17 million.

C) A cash outflow of $112 million.

D) A cash outflow of $111 million.