1.

On September 14th, 20x8, Mario Ltd. purchased equipment costing $49904.16. The company paid a portion in cash and signed a note payable for the remaining amount. Mario Ltd. also purchased a building costing $297817.74. For the building the company paid $117017.85 cash and issued common shares for the remaining amount. Notes Payable had a balance of $42721.01 on the 20x7 financial statements and $55511.47 on the 20x8 statements. How would these transactions be reflected in the cash flow statement?

Select one:

a. Investing outflow of $ 347721.90 and a financing outflow of $0

b. Investing outflow of $154131.55 and a financing outflow of $ 193590.35

c. Investing outflow of $ 154131.55 and a financing outflow of $0

d. Investing outflow of $117017.85 and a financing outflow of $ 180799.89

2.

Net cash flow from operating activities for 20x2 for Graham Corporation was $151945. The following items are reported on the financial statements for 20x2:
	Amortization expense	$6854
	Cash dividends paid on common shares	4401
	Increase in accrued receivables	7712
Based only on the information above, Graham's net income for 20x2 was:

Select one:

a. 148634

b. 166511

c. 152803

d. 148402