1) The following information is available from the current period financial statements:

Net income	$ 112,509
Depreciation expense	36,266
Increase in accounts receivable	22,506
Decrease in accounts payable	22,829

The net cash flow from operating activities using the indirect method is

a.$75,920

b.$112,509

c.$103,440

d.$194,110

2) The cost of merchandise sold during the year was $49,803. Merchandise inventories were $13,586 and $8,255 at the beginning and end of the year, respectively. Accounts payable (all owed to merchandise suppliers) were $7,292 and $3,221 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

a.$7,292

b.$48,543

c.$40,401

d.$49,803

3) Sales for the year were $525,526. Accounts receivable were $99,080 and $81,852 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is

a.$525,526

b.$624,606

c.$559,982

d.$542,754

4) The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow.

Accounts Receivable, Jan. 1	$13,762
Accounts Receivable, Dec. 31	8,896
Accounts Payable, Jan. 1	5,694
Accounts Payable, Dec. 31	8,552
Inventory, Jan. 1	6,939
Inventory, Dec. 31	16,096
Sales	62,178
Cost of Goods Sold	32,987

The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.

a.$67,044

b.$64,186

c.$57,312

d.$62,178

5) Which of the following can be found on the statement of cash flows?

a.total changes in stockholders' equity

b.changes in retained earnings

c.cash flows from operating activities

d.total assets