1.

Mccloe Corporation's balance sheet and income statement appear below:

Mccloe Corporation Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$ 72	$ 50
Accounts receivable	66	69
Inventory	92	69
Total current assets	230	188
Property, plant and equipment	680	590
Less: accumulated depreciation	275	269
Net property, plant, and equipment	405	321
Total assets	$635	$509
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$ 85	$ 64
Accrued liabilities	58	35
Income taxes payable	64	64
Total current liabilities	207	163
Bonds payable	140	158
Total liabilities	347	321
Stockholders' equity:
Common stock	61	49
Retained earnings	227	139
Total stockholders' equity	288	188
Total liabilities and stockholders' equity	$635	$509

Income Statement
Sales	$753
Cost of goods sold	503
Gross margin	250
Selling and administrative expenses	115
Net operating income	135
Gain on sale of plant and equipment	18
Income before taxes	153
Income taxes	55
Net income	$ 98

Cash dividends were $10. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was:

A -	$12
B-	$(10)
C-	$(16)
	D- $(18)

2.

Gayles Corporation's most recent balance sheet appears below:

Gayles Corporation Comparative Balance Sheet
	Ending Balance	Beginning Balance
Assets:
Cash and cash equivalents	$ 53	$ 45
Accounts receivable	96	89
Inventory	78	75
Property, plant and equipment	638	550
Less: accumulated depreciation	266	230
Total assets	$599	$529
Liabilities and stockholders' equity:
Accounts payable	$ 69	$ 67
Bonds payable	295	350
Common stock	97	95
Retained earnings	138	17
Total liabilities and stockholders' equity	$599	$529

The net income for the year was $170. Cash dividends were $49. The company did not issue any bonds or repurchase any of its common stock during the year. The net cash provided by (used in) financing activities for the year was:

	A - $2
	B - $(55)
	C - $(102)
	D- $(49)