Question 1

Draco Company engages in the following cash payments:

Purchase equipment	$ 3,650
Pay rent	275
Repay loan to the bank	5,400
Pay workers salaries	1,350

What is the total amount of cash paid for operating activities?

Multiple Choice

• $3,650

• $9,050

• $6,750

• $1,625

Question 2

Emmitt had the following final balances after the first year of operations: assets, $35,900; stockholders' equity, $14,000; dividends, $2,000; and net income, $9,400. What is the amount of Emmitt's liabilities?

Multiple Choice

• $23,900

• $21,900

• $35,900

• $10,500

Question 3

Use the following appropriate amounts to calculate net income: Revenues, $11,800; Liabilities, $4,100; Expenses, $4,900; Assets, $18,500; Dividends, $1,000.

Multiple Choice

• $6,900

• $5,900

• $6,750

• $14,400