42 _

which of the followings is considered as an inflow in the investing activities in the statement of cash flow

a.

purchase of plant asset

b.

proceeds from sale of plant asset

c.

gain on sale of a plant asset

d.

no answer is correct

43_

Moorman Corporation reports the following information:

Correction of overstatement of depreciation expense

in prior years, net of tax $ 430,000

Dividends declared 320,000

Net income 1,000,000

Retained earnings, 1/1/10, as reported 2,000,000

Moorman should report retained earnings, 31/12/10, as adjusted at

Select one:

a.

$1,820,000

b.

$3,110,000

c.

$2,250,000

d.

$3,430,000