14. Wilton Company reported net income of $40,000 for the year. During the year, accounts receivable decrcased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is a $30,000 b. $55,000 C. $39,000. d. $35,000 15. A company had net income of $180,000. Depreciation expense is $26,000. During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000 How much cash was provided by operating activities? a. $146,000 b. $152,000 C, $226,000 d. $238,000 16. Land acquired from the issuance of common stock is reported a. as a financing activity b. as an investing activity c. as an operating activity d. as a significant noncash activity in a separate disclosure at the bottom of the statement In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is 17. a. b. added to net income. deducted from net income. c. ignored because it does not affect cash d. not reported on a statement of cash flows. 18. Nolan's Pest Control Products has the following information available: Net Income Cash Provided by Operations Cash Sales Capital Expenditures Dividends Paid $15,000 21,000 65,000 11,000 3,000 What is Nolan's free cash flow? a. $18,000 b. $10,000 c. $7,000 d. $1,000 Use the following information for questions 19-25 The following information pertains to Soho Company. Assume that all balance sheet amounts und ending balance figures. Assume that all sales were on credit. represent both average Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment $ 40,000 25,000 20,000 210,000 $295,000 Total Assets