1. Mori Company's net income last year was $25,000 and cash dividends declared and paid to the company's stockholders totaled $10,000. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Debit balances: Accounts receivable $(6,000) Inventory $2,000 Prepaid expenses $(1,000) Long term investments $20,000 Credit balances: Accumulated depreciation $12,000 Accounts payable $9,000 Taxes payable $(5,000) Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:

a. $4,000

b. $37,000

c. $46,000

d. $36,000

2. The following transactions occurred last year at Joyce Company: Issuance of shares of the companys own common stock $80,000; Dividends paid to the companys own shareholders $3,000; Dividends received from investments in other companies shares $5,000; Interest paid on the companys own bonds $6,000; Repayment of principal on the companys own bonds $50,000; Proceeds from sale of the companys used equipment $22,000; Purchase of land $140,000. Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows would be:

a. $306,000

b. $21,000

c. $(92,000)

d. $27,000

3. Last year Cucumber Company reported a cost of goods sold of $30,000. Inventories decreased by $7,000 during the year, and accounts payable decreased by $13,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

a. $43,000

b. $36,000

c. $24,000

d. $23,000

4. Last year Marks Company sold equipment with a net book value of $135,000 for $110,000 in cash. This equipment was originally purchased for $215,000. What will be the net effect of this transaction on the net cash provided by investing activities on the statement of cash flows?

a. A net deduction of $25,000 from cash.

b. A net deduction of $105,000 from cash.

c. A net addition of $105,000 to cash.

d. A net addition of $25,000 to cash.

5. XYZ Printing Inc. paid out $21,750 of common dividends during the year. It ended the year with $187,500 of retained earnings versus the prior years retained earnings of $132,250. How much net income did the firm earn during the year?

a. $84,893

b. $89,137

c. $93,594

d. $80,850

e. $77,000