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Greene Corporation Balance Sheets At December 31 2019 2018 Assets: $ 27,040 $25,440 Cash Accounts 29,400 32,180 receivable Merchandise 70,625 59,710 inventory Long-term investments 56,000

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Greene Corporation Balance Sheets At December 31 2019 2018 Assets: $ 27,040 $25,440 Cash Accounts 29,400 32,180 receivable Merchandise 70,625 59,710 inventory Long-term investments 56,000 56,000 Equipment 175,500 145,500 Accumulated, depreciation Total assets $325,015 $287,630 (33,550) (31,200) Liabilities: Accounts payable Salaries payable Long Term Bonds $ 62,745 $42,635 10,200 10,725 48,750 66.000 Bonds 48,750 66,000 payable Total $121,695 $119,360 liabilities Equity: Common 117,000 96,000 stock Paid-in capital in excess of par Retained 13,000 9,000 73,320 63,270 earnings Total equity $203,320 $168,270 Total liabilities and $325,015 $287,630 equity (1) Received cash for the sale of equipment that had cost $37,550 yielding an $8,400 loss. (2) New equipment was purchased for $67,550 cash. (3) Cash dividends were paid. (4) Additional shares of stock were issued for cash. Select the correct answer from the following questions as they relate to the statement of cash flows for calendar-year 2019 using the indirect method. The total adjustment to reconcile net income to net cash provided by operating activities related to Accounts Receivable is? O 1) Increase of $1,600 2) Decrease of $2,780 3) Increase of $2,780 4) Decrease of $29,400 The total adjustment to reconcile net income to net cash provided by operating activities related to Accounts Payable is? 1) Increase of $1,600 2) Decrease of $20,110 O 3) Increase of $20,110 O 4) Increase of $42,635 O 5) It has no effect on the Statement of Cash Flows The total adjustment to reconcile net income to net cash provided by operating items not providing or using cash (non-cash revenues or expenses) is? 1) Increase of $8,400 2) Decrease of $8,400 3) Increase of $29,400 4) Decrease of $29,400 O 5) It has no effect on the Statement of Cash Flows The total adjustment to reconcile net income to net cash provided by operating activities related to non-operating items (gains and losses) is? O 1) Increase of $8,400 O 2) Decrease of $8,400 O 3) Increase of $29,400 O 4) Decrease of $29,400 O 5) It has no effect on the Statement of Cash Flows The total cash paid for common stock dividends was? O 1) $10,050 O 2) $33,600 O 3) $43,650 4) $53,700 Common stock dividends are classified as what type of activity? O 1) Operating O 2) Investing 3) Financing O 4) Non-cash investing / financing The total cash received from the sale of Equipment is? O 1) $2,100 2) $8,400 3) $37,550 4) $67,550

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