1.Use the following information as of December 31 to determine equity.

Cash	57,000
Buildings	175,000
Equipment	206,000
Liabilities	$141,000

		$57,000.
		$141,000.
		$297,000.
		$438,000.
		$579,000.

2.A decrease in the inventory account during the year should be reported on the statement of cash flows as:

		An increase in cash flows from operating activities
		An increase in cash flows from investing activities
		A decrease in cash flows from operating activities
		A decrease in cash flows from investing activities
		An increase in cash flows from financing activities

3:A company sold $12,000 worth of bicycles with an extended warranty. It estimates that 2% of these sales will result in warranty work. The current period's entry to record the warranty expense is

		Debit Warranty Expense $240; credit Cash $240.
		Debit Prepaid Warranties $240; credit Warranty Expense $240.
		Debit Estimated Warranty Liability $240; credit Cash $240.
		Debit Sales Allowances $240; credit Estimated Warranty Liability $240.
		Debit Warranty Expense $240; credit Estimated Warranty Liability $240.

4,UltimateSportswearhas$100,000of8%noncumulative,nonparticipating,preferredstockoutstanding.UltimateSportswearalsohas$500,000ofcommonstockoutstanding.Inthecompany'sfirstyearofoperation,nodividendswerepaid.Duringthesecondyear,thecompanypaidcashdividendsof$30,000.Thisdividendshouldbedistributedasfollows:

		$8,000preferred;$22,000common.
		$16,000preferred;$14,000common.
		$7,500preferred;$22,500common.
		$15,000preferred;$15,000common.
		$0preferred;$30,000common.