1. The following information is available for Kennedy Corp. for the year ended December 31, 2012: sale of land, $100,000; sale of equipment with a book value of $45,000 for a $5,000 gain; issuance of common stock, $70,000; purchase of equipment, $30,000; payment of cash dividends, $60,000; and issuance of a notes receivable, $40,000. Based on this information, what amount should Kennedy Corp. report for net cash provided by investing activities?

A) $85,000

B) $80,000

C) $75,000

D) $30,000

E) None of the above

2.. ReNew Corporation had accounts receivable of $100,000 at the beginning the year and $90,000 at the end of the year and accounts payable at the beginning of the year of $40,000 and $45,000 at the end of the year. Cash sales for the year were $200,000 and sales on account for the year amounted to $465,000. The amount to be reported on the statement of cash flows for cash collections from customers under the direct method is:

A) $455,000.

B) $675,000.

C) $450,000.

D) $655,000.

E) $650,00

3. Werner Corp. purchased a new piece of equipment on January 1, 2010. The equipment had a list price of $100,000, however the seller agreed to allow Werner Corp. to pay for the equipment in 8 yearly installments of $15,000 on January 1 of each year, with the first payment on the date of purchase, January 1, 2010. Assuming the note incurs interest at 8%, what amount should Werner Corp. debit the equipment account for on the date of purchase?

A) $78,096

B) $120,000

C) $93,096

D) $86,200 E) None of the above