1. Slam Corp. is being sued for misrepresenting the health benefits of its products Slam's attorney has informed the corporation that it will probably lose the case and be fined anywhere from $150,000 to $200,000. Which of the following must Slam do? A. Accrue a $200,000 loss and disclose in the footnotes to its financial statements that the loss might be only $150,000. B. Accrue a $150,000 loss and disclose in the footnotes that the loss may be as high as $200,000. C. Accrue a loss of $175,000 and disclose in the footnotes the range of the contingent loss D. Disclose the range of the contingent loss in the footnotes but not accrue any loss. 2. On July 1, Alto Corp. split its common stock 5 -for-1 when the market value was $100 per share. Prior to the split, Alto had 10,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock A. Was reduced to $2 B. Was reduced to $8 C. Was reduced to $5 D. Remained at $10 Questions 3 and 4, regarding Cash's cash flow statement, are based on the direct method. 3. The following operating expenses of $100,000 were reported in Cash Inc.'s 2023 income statement. Depreciation and utilities in the amount of $15,000 were included in operating expenses. The accumulated depreciation account increased by $30,000 over the course of the year. No depreciable assets were sold during 2023. How much will be reported, on the 2023 cash flow statement, as cash paid for operating expenses? A. $70,000 B. $100,000 C. $85,000 D. $130,000 4. Cost of goods sold of $250,000 was reported on the 2023 income statement. Over the course of 2020 , inventory increased by $40,000 and accounts payable (relating to inventory) decreased by $25,000. How much will be reported, on the 2023 cash flow statement, as cash paid for inventory in 2023? A. $185,000 B. $235,000 C. $250,000 D. $315,000