6. Salaries & Wages expense for the year in the Income Statement shows $40,000. Salaries & Wages Payable at the beginning of the year was $7,000 and $12,000 at year-end. What were payments for Salaries and Wages during the year?: *

A) $33,000

B) $35,000

C) $40,000

D) $47,000

E) $52,000

7. Tildor Inc. gathered the following cash flow information for the year:

Loss on sale of building	$ 5,000
Issued common stock of Tildor Inc.	$ 7,000
Proceeds from sale of equipment	$ 13,000
Cash dividends paid	$ 20,000
Shares of Tilder repurchased	$ 40,000
Sold Bonds of Barnes Inc.	$150,000

In the Statement of Cash Flows for this year, what amount should be reported as the net cash flow from investing activities?: *

A) $163,000 inflow

B) $137,000 outflow

C) $123,000 inflow

D) $177,000 outflow

E) $157,000 outflow

8. How will the present value of a future amount be affected if the interest rate is raised? : *

A) The present value will increase

B) The present value will decrease

C) The present value will not change

D) Must know the amount of the future value before this can be answered

9. An investor purchases a 2-year, $1,000 par value bond that pays semiannual interest of $40. Use the table below to determine the current market value of the bond (rounded to the nearest dollar), if the annual market rate of interest is 22 percent.

Table Factors at 11% Interest Rate
# of periods	PV of $1	FV of $1	PV of an ordinary annuity of $1	FV of an ordinary annuity of $1
1	0.90090	1.11000	0.90090	1.0000
2	0.81162	1.23210	1.71252	2.1100
3	0.73119	1.36736	2.44371	3.3421
4	0.65873	1.51807	3.10245	4.7097
5	0.59345	1.68506	3.69590	6.2278
6	0.53464	1.87041	4.23054	7.9129

: *

A) $659

B) $783

C) $1,000

D) $727

E) $3,129

10. Which of these situations describes a deferred annuity?: *

A) Income taxes due to the taxing authorities in future years

B) Routine monthly payments into a 401(k) retirement plan

C) Borrowing money today to buy something in the future

D) Buying something today and repaying it monthly in the future

E) Setting aside an amount today and drawing monthly amounts in 10 years