221. A company had the following cash flows for the year:

1. Purchased land, $60,000
2. Borrowed from a local bank, $100,000
3. Paid employee salaries, $50,000
4. Issued common stock, $75,000
5. Paid dividends, $20,000
6. Sold equipment, $40,000
7. Sold services to customers, $120,000

What amount would be reported for net financing cash flows on the Statement of Cash Flows? A) $70,000. B) $155,000. C) $40,000. D) ($20,000).

222. Which of the following is a positive sign that a company is selling its inventory quickly?
     1. Both a high inventory turnover ratio and a low average days in inventory.
     2. A low inventory turnover ratio.
     3. A low average days in inventory.
     4. A high inventory turnover ratio.
223. For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Expense.
     1. True B) False

224. ABC issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred stock is noncumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?
     1. $9,000 to preferred stockholders and $9,000 to common stockholders.
     2. $6,000 to preferred stockholders and $12,000 to common stockholders.
     3. $12,000 to preferred stockholders and $6,000 to common stockholders.
     4. $18,000 to preferred stockholders and $0 to common stockholders.

225. ABC has the following current assets: cash, $102 million; receivables, $94 million; inventory,

$182 million; and other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt,

$23 million. Based on these amounts, what is the current ratio?

A) 4.04. B) 2.84. C) 2.98. D) 2.54.