1.

Net income	$ 14,000
Cash dividends paid to stockholders	3,300
Cash proceeds from sale of land	3,650
Cash proceeds from bank loan	8,900
Cash payment (principal) on bank loan	2,400
Cash paid to purchase equipment	6,600

a) The company would report net cash provided by (used in) investing activities of:

$(1,250)

$8,900

$(2,950)

$14,000

b) The company would report net cash provided by (used in) financing activities of:

$11,300

$3,200

$8,900

$(4,375)

2. A company purchases a $315,100 building, paying $214,000 in cash and signing a $101,100 promissory note. What will be reported on the statement of cash flows as a result of this transaction?

A $214,000 cash outflow from investing activities and a $101,100 cash inflow from financing activities.

A $315,100 cash outflow from investing activities.

A $214,000 cash outflow from investing activities and a $101,100 noncash transaction.

A $315,100 cash outflow from investing activities and a $101,100 cash inflow from financing activities.

3. Depreciation expense is $23,600 and the beginning and ending accumulated depreciation balances are $151,800 and $156,800, respectively. What is the cash paid for depreciation?

$5,000

$28,600

$23,600

$0