1. Which of the following transactions would cause a company's free cash flow to decrease?

Multiple Choice

• Collecting cash from a customer

• Purchasing equipment with cash

• Issuing common stock in exchange for cash

• Borrowing cash from a bank with a note payable

2. Last year Burch Corporation's cash account decreased by $38,000. Net cash provided by (used in) investing activities was $9,300. Net cash provided by (used in) financing activities was $(34,500). On the statement of cash flows, the net cash provided by (used in) operating activities was:

Multiple Choice

• $(63,200)

• $25,200

• $(38,000)

• $(12,800)

3. A company had the following information in its long-term assets section on the balance sheet:

	December 31, 2017	December 31, 2016
Equipment	$490,000	$410,000
Accumulated Depreciation	(65,000)	(35,000)
Book Value	$425,000	$375,000

During the year, the company sold equipment that had originally cost $25,000 and had accumulated depreciation of $10,000. The company also recognized a gain on the sale of the equipment of $3,000.

Based on this information, determine the amount of depreciation expense for the year that would appear in the operating section of the statement of cash flows.

4. A company had the following information in its long-term assets section on the balance sheet:

	December 31, 2017	December 31, 2016
Equipment	$490,000	$410,000
Accumulated Depreciation	(65,000)	(35,000)
Book Value	$425,000	$375,000

During the year, the company sold equipment for cash that had originally cost $25,000 and had accumulated depreciation of $10,000. The company also recognized a gain on the sale of the equipment of $3,000.

Based on this information, determine the amount of proceeds from the sale of equipment that would appear in the investing section of the statement of cash flows.