Inventory on January 1, 2020 was listed at $14,000 on the Balance Sheet. On the December 31, 2020 Balance Sheet, the Inventory balance was $10,000. How would this difference be shown in the Operating Activities section of the Statement of Cash Flows?

A. This would not be shown on the Statement of Cash Flows.

B. Decrease in Inventory $4,000

C. Decrease in Inventory ($4,000)

D. Increase in Inventory $4,000

During 2020, equipment that originally cost $26,000 was sold for $16,000 cash. The equipment had $6,000 of accumulated depreciation tied to it when it was sold. The Property, Plant, and Equipment account had a balance of $92,000 on January 1, 2020 and $83,000 on December 31, 2020. How would the purchase of Property, Plant, and Equipment be shown on the Statement of Cash Flows?

A. Operating Activities; Purchase of Property, Plant, and Equipment ($16,000)

B. Investing Activities; Purchase of Property, Plant, and Equipment ($17,000)

C. Investing Activities; Purchase of Property, Plant, and Equipment ($35,000)

D. There were no purchases of Property, Plant, and Equipment in 2020.

The January 1, 2020 balance for Prepaid Rent was $60,000. On December 31, 2020, the balance in Prepaid Rent was $54,000. How would this difference be shown in the Operating Activities section of the Statement of Cash Flows?

A. Increase in Prepaid Rent ($6,000)

B. Decrease in Prepaid Rent ($6,000)

C. Decrease in Prepaid Rent $6,000

D. Increase in Prepaid Rent $6,000