Krech Corporation's comparative balance sheet appears below:

	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$31,000	$28,000
Accounts receivable	18,000	20,000
Inventory	58,000	56,000
Prepaid expenses	12,000	10,000
Total current assets	119,000	114,000
Property, plant, and equipment	374,000	354,000
Less accumulated depreciation	190,000	165,000
Net property, plant, and equipment	184,000	189,000
Total assets	$303,000	$303,000
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable	$13,000	$9,000
Accrued liabilities	52,000	53,000
Income taxes payable	67,000	69,000
Total current liabilities	132,000	131,000
Bonds payable	76,000	73,000
Total liabilities	208,000	204,000
Stockholders' equity:
Common stock	28,000	26,000
Retained earnings	67,000	73,000
Total stockholders' equity	95,000	99,000
Total liabilities and stockholders' equity	$303,000	$303,000

The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows?

A. The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income

B.The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income

C. The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income

D. The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income

Walmouth Corporation's comparative balance sheet and income statement for last year appear below:

Comparative Balance Sheet
	Ending Balance	Beginning Balance
Cash	$40,000	$32,000
Accounts receivable	89,000	79,000
Inventory	48,000	55,000
Prepaid expenses	8,000	11,000
Long-term investments	250,000	210,000
Property, plant and equipment	550,000	550,000
Less accumulated depreciation	264,000	239,000
Total assets	$721,000	$698,000
Accounts payable	$58,000	$46,000
Accrued liabilities	15,000	19,000
Income taxes payable	55,000	41,000
Bonds payable	100,000	160,000
Common stock	150,000	140,000
Retained earnings	343,000	292,000
Total liabilities and stockholders' equity	$721,000	$698,000

Income Statement
Sales	$870,000
Cost of goods sold	450,000
Gross margin	420,000
Selling and administrative expense	270,000
Net operating income	150,000
Income taxes	45,000
Net income	$105,000

The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. 1. The net cash provided by (used in) operating activities last year was:

A. $105,000

B. $58,000

C. $130,000

D. $152,000

2. The net cash provided by (used in) financing activities last year was:

A. ($104,000)

B. $104,000

C. ($60,000)

D. $60,000

7. Excerpts from Aultman Corporation's comparative balance sheet appear below:

	Ending Balance	Beginning Balance
Cash and cash equivalents	$62,000	$29,000
Inventory	$371,000	$345,000
Accounts payable	$71,000	$73,000

Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

A. The change in Inventory is added to net income; The change in Accounts Payable is added to net income

B. The change in Inventory is added to net income; The change in Accounts Payable is subtracted from net income

C. The change in Inventory is subtracted from net income; The change in Accounts Payable is added to net income

D. The change in Inventory is subtracted from net income; The change in Accounts Payable is subtracted from net income

12. Kaeser Corporation's most recent balance sheet appears below:

Comparative Balance Sheet

Assets Ending Balance Beginning Balance

Current Assets

Cash and cash equivalents. $44 $36

Accounts receivable.. 54 60

Inventory. 32 37

Total Current Assets.130 133

Property, plant and equipment.527 460

Less Accumulated depreciation...339 289

Net property, plant and equipment..188 171

Total Assets$ 318 $ 304

Liabilities and stockholders equity

Current Liabilities:

Accounts Payable..$46 $41

Accrued liabilities 54 17

Income taxes payable26 29

Total current liabilities 92 87

Bonds Payable.. 145 180

Total Liabilities.237 267

Stockholders equity:

Common Stock31 30

Retained earnings.50 7

Total Stockholders equity..81 37

Total liabilities and stockholders equity. $318 $304

The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. What was the net cash provided by (used in) investing activities for the year?

A. ($67)

B. ($17)

C. $67

D. $17