1. Manwill Company owns 40% (30,000 shares) of Hall Company's voting stock. Since Manwill has a significant interest in Hall, it uses the equity method of accounting for the investment. Hall reported the following information for the year: 1. Hall reported revenues of $90,500 and expenses of $12,500. In addition, during the year, Hall sold the machinery and reported a gain of $2,000 on it. 2. Hall paid dividends of $20,000. 3. Hall's stock value increased from $40 to $45. Required: (1) Calculate the amount of Share of Income from Associates for the year. (2) Calculate the ending balance of Investment Accounted for Using the Equity Method.

2. Assume that there is no income tax, Booth Company's financial statements show a net income of $143,000. The following items also appear on Booth's balance sheet: Depreciation expense $32,000 Dividends payable increase 5000 Amortization expense 50,000 Gain on sale of equipment 5,000 Accounts receivable decrease 36,000 Prepaid rent increase 22,000 Accounts payable decrease 26,000 Equipment was purchased by issuing a long term note for 10,000 What is Booth's net cash flow from operating activities?