3.

he net income reported on the income statement for the current year was $315,634. Depreciation recorded on fixed assets and amortization of patents for the year were $37,972 and $11,280, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$48,869	$60,126
Accounts Receivable	125,534	108,485
Inventories	106,530	92,264
Prepaid Expenses	4,656	7,258
Accounts Payable (merchandise creditors)	47,973	78,545

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a.$290,447

b.$400,843

c.$305,601

d.$333,571

2.

Bonds Payable has a balance of $916,000 and Discount on Bonds Payable has a balance of $9,160. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption?

a.$9,160 gain

b.$13,740 gain

c.$13,740 loss

d.$9,160 loss

1.

Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal entry to record the issuance will show a

a.credit to Discount on Bonds Payable for $160,000

b.credit to Cash for $1,840,000

c.credit to Bonds Payable for $2,000,000

d.debit to Cash for $2,000,000