1. Panjim's 2005 cash flow from operations is:

A net outflow of $90,000

A net inflow of $90,000

A net inflow of $85,000

A net outflow of $85,000

2. Panjim's 2005 cash flow from investing activities is:

A net outflow of $7,000

A net inflow of $3,000

A net inflow of $7,000

A net outflow of $3,000

3. Panjim's 2005 cash flow from financing activities is:

A net outflow of $91,000

A net inflow of $86,000

A net outflow of $86,000

A net inflow of $91,000

4. Panjim recorded an interest expense of $6,000 for 2005. Which one of the following line items would be included in the operating section of the Panjim's 2005 indirect method statement of cash flows?

Add increase in interest payable...$1,000

Subtract increase in interest payable...($1,000)

Add increase in interest payable...$6,000

Subtract decrease in interest payable...($5,000)

PANJIM TRADING COMPANY T-ACCOUNT 2005 Cash Collections fhern60,000 Bal 11 225,000 customers 60,000 44,000 Payments to suppliers Collections from Common stock issued 20,000 13,000 Purchase of machinery Five-year bank loan 75,000 100,000 Salaries paid Sale of used van 10,000 4,000 Dividends paid 5,000 1.000 Interest payment Garage rental prepayment Bal 12/31 223,000