1. In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$102,000
Accounts payable increased by	8,000
Accounts receivable decreased by	20,000
Inventories decreased by	2,000
Cash dividends paid were	7,000
Depreciation expense was	30,000
Net cash provided by operating activities was:

1. $162,000.
2. $132,000.
3. $111,000

$118,000.

1. Using Double Declining Balance to depreciate the asset, we should record depreciation expense in 2012 of:

1. $200,000
2. $150,000
3. $100,000
4. $50,000

2. Assume we purchased the equipment on January 1, 2011. After two years using straight-line depreciation we determined that the useful life should have been six years. What should depreciation expense in 2013 (third year) be:

1. $22,500
2. $55,000
3. $45,000
4. $25,000

1. Our company performs $2,000 of services and receives $500 in cash and the balance will be received at a later date. The effect of this transaction is:

1. Assets increase by $500
2. Revenues increase by $500
3. Net income increases by $2,000
4. Net income increases by $500