a. Identify whether each of the following is an operating, investing, or financing cash outflow or inflow or if it is a noncash flow, under GAAP.[10] Purchase marketable equity securities Dividends on marketable equity securities Wages to employees Depreciation Issuance of new stock Interest paid Goodwill amortization Acquisition of company using purchase accounting Sale of land Tax paid on sale of land Cash paid by customers b. Use the following selected data about Blueberry Ltd. and prepare the operating activities section of a statement of cash flows for the company for 2019 using the indirect method. [10] 2019 2018 Accounts receivable $36,000 $42,000 Inventories 28,000 25,000 Accounts payable 31,000 35,000 Salaries payable 2,000 1,000 Equipment 60,000 40,000 Accumulated depreciation 12,000 16,000 Bonds payable 50,000 100,000 Common stock 150,000 100,000 Retained earnings 38,000 20,000 Table 2: The Income Statement data 2019 Net sales $420,000 Cost of goods sold 300,000 Operating expenses (excluding depreciation expense) 84,000 Net income 30,000 Gain on sale of equipment (included in net income above) 2,000 c. Below are selected ratios for three companies which operate in three different industries: Discount Retail Store, Drug, and Utility. Identify which industry each of the companies A, B, and C operate in. Give at least two reasons for each of your selections. [10] A B C Industry COGS/Sales 80% 58% n/a R&D/ Sales 0% 7% 0.1% 2019 Net sales $420,000 Cost of goods sold 300,000 84,000 Operating expenses (excluding depreciation expense) Net income 30,000 Gain on sale of equipment (included in net income above) 2,000 c. Below are selected ratios for three companies which operate in three different industries: Discount Retail Store, Drug, and Utility. Identify which industry each of the companies A, B, and C operate in. Give at least two reasons for each of your selections. [10] A B C 80% 58% n/a Industry COGS/Sales R&D/ Sales Advertising/Sales 0% 7% 0.1% not defined 3% 0.1% Interest/Sales 0.9% 1% 6% 2.5% 10% 10% Net Income/Sales Return on Assets 8.5% 10.6% 7.2% Inventory Turnover 5.5 4 n/a Accounts Receivable Turnover 100 6 Long-term Debt/Equity 60% 50% 40% n/a = not applicable Total Marks: [30]