1/ Rowdy's Restaurants cash flow ($ in millions)

Cash received from:
Customers	$	3,900
Interest on investments		340
Sale of land		240
Sale of Rowdy's capital stock		880
Issuance of debt securities		3,400
Cash paid for:
Interest on debt	$	440
Income tax		220
Debt principal reduction		2,900
Purchase of equipment		6,800
Purchase of inventory		2,400
Dividends on capital stock		620
Operating expenses		780

Rowdy's would report net cash inflows (outflows) from investing activities in the amount of:

Multiple Choice

• $(6,800) million.

• $240 million.

• $(3,160) million.

• $(6,560) million.

2/ On November 1, 2018, Jamison Inc. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2019. On December 31, 2018, the company's year-end, the following information relative to the discontinued division was accumulated:

Operating loss Jan. 1Dec. 31, 2018	$	75	million
Estimated operating losses, Jan. 1 to April 30, 2019		89	million
Excess of fair value, less costs to sell, over book value at Dec. 31, 2018		14	million

In its income statement for the year ended December 31, 2018, Jamison would report a before-tax loss on discontinued operations of:

Multiple Choice

• $75 million.

• $164 million.

• $150 million.

• $61 million.

3/ Misty Company reported the following before-tax items during the current year:

Sales revenue	$	800
Selling and administrative expenses		450
Restructuring charges		10
Loss on discontinued operations		40

Misty's effective tax rate is 40%. What is Misty's income from continuing operations?

Multiple Choice

• $204.

• $410.

• $340.

• $350.

4/ Cendant Corporation's results for the year ended December 31, 2018, include the following material items:

Sales revenue	$	6,270,000
Cost of goods sold		3,670,000
Selling and administrative expenses		1,240,000
Loss on sale of investments		181,000
Loss on discontinued operations		487,000
Loss on impairment from continuing operations		70,000

Cendant Corporation's income from continuing operations before income taxes for 2018 is:

Multiple Choice

• $622,000.

• $1,109,000.

• $1,167,400.

• $1,179,000.