2) The Big Hair Company (which had been incorporated in 2007) experienced the events listed below during the year ended December 31, 2016: 1. Issued additional shares of capital stock for $12,500. 2. Purchased equipment costing $6,000. A cash payment of $2,000 was made on de-livery of the equipment and a note for $4,000 was signed for the remaining balance of the purchase price. 3. Purchased $17,000 of inventory (merchandise for resale) on account 4. Sold inventory costing $13,000 for $22,000; all sales were on account. 5. Collected $14,000 on account (i.c., against accounts receivable). 6. Incurred miscellaneous operating expenses amounting to $6,200 (all on account) 7. Paid $22,000 on account (.e., against accounts payable). 8. Recognized $1,200 of depreciation expense for the year. 9. Declared and paid dividends of $700. No other transactions or events occurred during the year. After accounting for the above events, indicate whether the following statements are "True or "False by circling your answers below (each answer is worth 2 points): A) T F Total assets increased by $18,600 during the year 2016. B) TF Net assets increased by $13,400 during the year 2016, C) T F Nonmonetary assets increased by $10,000 during the year 2016, D) TF Retained carnings increased by $2,300 during the year 2016, E) TF Net income for the year 2016, was $900. chilitie's stockholder Dality 3) Given below are a firm's (1) cash flows from operating activities section of its cash flow statement for a year, and (2) income statement nt for the year. $ 24,000 Partial Cash Flow Statement Cash Flows from Operating Activities Net income Adjustments to reconcile income to operating cash flow; Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Increase in wages payable Decrease in income taxes payable Total adjustments Net cash provided by operating activities $ 12,000 3,800 (4.000) 6.900 900 (600) 19,000 $ 43,000 Income Statement $ 328,000 Sales Expenses Cost of goods sold Wage expense Depreciation Other expenses Income before taxes Income taxes Net income $ 193.000 62.000 12,000 25,000 292,000 36,000 12,000 $ 24,000 All inventory purchases and other expenses were incurred on account Indicate whether the following statements are "True or "False by circling your answers below (cach answer is worth 2 points): A) TF Cash collected from customers during the year amounted to $324,200. Cash paid to suppliers of goods and services (excluding wage payments) during the year amounted to $215.100. C) TF Cash paid to employees for wages during the year amounted to $61,100. D) TF Income tax payments during the year amounted to $11,400 E) TF Cash received from depreciation during the year amounted to $12,000. B) TF PART III (60 Points - 10 @ 6 Points Each) 1) During the year a not-for-profit organization recorded the following transactions: . . $10,000 of temporarily restricted net assets recorded last year were reclassified as unrestricted due to the expiration of the time restriction $25,000 of unrestricted contributions were received, of which $20,000 was received in cash during the year $12,000 of contributions were received in the form of equity securities with the restriction that the contribution was for the endowment $35,000 of program expenses and $5,000 of supporting services expenses were incurred during the period $40,000 of contributions were received with the restriction that the contribution be used for a specific program, by the end of the year none of the funds had been used in the program . . Based on the above information, which of the following is not correct: A. Temporarily restricted contributions for the year were $40,000 B. Permanently restricted contributions were $12,000 C. Total net assets increased by $37,000 D. Net assets released from restriction totaled $10,000 E. Unrestricted net assets increased by $5,000