Part 1: Short Answer 1. Luke Corporation is a manufacturer of home furnishings, Selected financial information about Luke is listed below. Place an "X" in the box for each item that would be included in the Operating Activities section of Luke Corporation's Statement of Cash Flows. (6 points) Borrowed $850,000 from a bank Increased accounts payable $85,000. Purchase investments for $285,000. Depreciation of $35,000 was recorded on Equipment Purchased equipment for $210,000 in cash. Issued shares of preferred stock for $500,000. Repurchased outstanding common shares using $100,000 in cash. Purchased land for $100,000 cash. Increased Inventories by $320,000 Paid dividends of $55,000. Increased accounts receivable by $217,000. Sold used equipment at a $5,000 loss. 2. The financial statements for Warren Company show the following: Sales (all credit sales) $950,000 Cost of goods sold $700,000 Beginning Balance Ending Balance Merchandise Inventory $45,000 $56,000 Accounts Receivable 53,000 50,000 Accounts Payable 37,000 42,000 (a) Based on this information calculate the amount of cash paid for merchandise : (5 points) (b) Calculate the amount of cash received from customers: (3 points)