1.All-Star Automotive Company experienced the following accounting events during Year 3: Performed services for $14,400 cash. Purchased land for $7,400 cash. Hired an accountant to keep the books. Received $34,000 cash from the issue of common stock. Borrowed $8,800 cash from State Bank. Paid $4,400 cash for salary expense. Sold land for $8,800 cash. Paid $3,400 cash on the loan from State Bank. Paid $4,600 cash for utilities expense. Paid a cash dividend of $1,400 to the stockholders. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare a statement of cash flows. Assume All-Star Automotive had a beginning cash balance of $9,400.

2.

Castile Inc. had a beginning balance of $3,400 in its Accounts Receivable account. The ending balance of Accounts Receivable was $3,600. During the period, Castile recognized $45,000 of revenue on account. Castiles Salaries Payable account has a beginning balance of $2,550 and an ending balance of $1,100. During the period, the company recognized $39,850 of accrued salary expense. Required

1. Based on the information provided, determine the amount of net income.

2. Based on the information provided, determine the amount of net cash flow from operating activities.