39. Sweet Companys outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividends Declared & Paid
Year 1	$	2,000
Year 2	$	6,000
Year 3	$	32,000

The amount of dividends paid to preferred and common shareholders in year 3 is:

• $7,000 preferred; $25,000 common.

• $15,000 preferred; $17,000 common.

• $5,000 preferred; $27,000 common.

• $32,000 preferred; $0 common.

• $0 preferred; $32,000 common.

42. In preparing a company's statement of cash flows using the indirect method, the following information is available:

Net income	$	52,000
Accounts payable decreased by		18,000
Accounts receivable increased by		25,000
Inventories increased by		5,000
Depreciation expense		30,000

Net cash provided by operating activities was:

• $70,000.

• $52,000.

• $80,000.

• $60,000.

• $34,000.