$5$A

Fillmore Company$$s financial statements show the following:

Sales: $$300,000$

Wage expense: $$120,000$

Accounts receivable decrease: $$54,000$

Prepaid rent increase: $$33,000$

Rent expense: $$75,000$

Wages payable decrease: $$39,000$

Depreciation expense: $$37,500$

Fillmore has no other revenues or expenses. What is Fillmore$$s net cash flow from operating activities?

A $$109,500$

B $$87,000$

C $$165,000$

D $$138,000$

E $$67,500$

$5$B

Salina Company sold equipment with a book value $($historical cost $$ accumulated depreciation$)$ of $$1,200$ for $$1,100$ cash. Total depreciation expense for the year was $$800.$ The beginning and ending balances in the Accumulated Depreciation account are $$2,000$ and $$1,400,$ respectively. The beginning and ending balances in the Property, Plant, and Equipment account are $$7,000$ and $$7,400$ respectively.

How much equipment did Salina Company purchase during the year?

A $$3,000$

B $$1,600$

C $$1,800$

D $$400$

E $$2,600$