1. Our company uses the indirect method for cash flows from operations on our statement of cash flows. What is the dollar amount of net cash flows provided by operating activities in the statement of cash flows, given the following information?

Net income	$63,000
Depreciation expense	$10,200
Increase in accounts receivable	$600
Increase in prepaid expenses	$400
Decrease in accounts payable	$200

a.

$51,600

b.

$72,000

c.

$74,000

d. 74,400

2.

One of our clients ordered Job #101 on October 1. As of October 31, the job was not finished. $5,000 of direct materials has been requisitioned, and we used $4,000 worth of direct labor. Our company applies factory overhead at the end of each month at a rate of 200% of direct labor costs.

In November, we added $2,000 in direct materials and $1,000 in direct labor, and we completed the job on November 15. What is the balance in our work in process inventory account related to Job #101 on October 31?

a.

$9,000

b.

$12,000

c.

$22,000

d.

$17,000