Answer the following questions on statement of cash flows:

1. Golden Company reports Advertising Expense of $515,000 on its 2021 Income Statement. Golden's Balance Sheet does not show balances for Advertising Payable or Prepaid Advertising. How much Cash did Golden pay for advertising in 2021?

a) $525,000

b) $500,000

c) $515,000

d) $0

2. If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is a proper adjustment to net income to arrive at cash flow from operating activities:

a) Subtracting Bad Debt Expense

b) Subtracting Gains from Sales of PP&E

c) Subtracting Losses from Sales of Investments

3. Harbinger Corporation reports the following balances:

How much Cash did Harbinger pay for inventory in 2021?

a) $290,000

b) $315,000

c) $325,000

d) $255,000

4. True or False: If Company A has a PE ratio of 80 and Company B has a PE ratio of 20, investors expect Company A to grow more in the future than Company B.

5. Cash inflows related to sales of goods to customers are reflected as part of __________ on the Statement of Cash Flows.

a) Net cash provided by/(used in) INVESTING activities

b) Net cash provided by/(used in) OPERATING activities

c) Net cash provided by/(used in) FINANCING activities

Accounts Receivable (Gross). Inventory Accounts Payable Unearned Revenue As of 12/31/21 80,000 160,000 120,000 40,000 As of 12/31/20 70,000 140,000 135,000 55,000 Year ended 12/31/21 570,000 290,000 Year ended 12/31/20 500,000 230,000 Sales Cost of Goods Sold