QUESTION 2 Limon Grill's balance in retained earnings was $87.000 at the beginning of the year and $92,000 at the end of the year. If the company declared and paid dividends of $26,000 during the year, how much was net income/(loss) for the year? $5,000 $31,000 $21,000 O ($5,000) QUESTION 3 During 2014, Lance Chips sold equipment that had an original cost of $143,000 and accumulated depreciation of $110,000, for cash totaling 525,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used? An addition to net income in the operating activities section for $25,000 An addition to net income of $8,000 in the operating activities section A subtraction of $33,000 in the investing activities section An addition of $8,000 in the investing activities section QUESTION 4 First National Eatery prepares its statement of cash flows using the indirect method. The statement reported that cash provided by operating activities for the year was $7,000. If the company experienced a $14,000 decrease in accounts receivable, a $13,000 decrease in accounts payable, and a $4,000 increase in inventory during the year, how much is the company's net income/(loss) for the year? O ($3,000) O $4,000 ($16,000) $10,000 QUESTION 5 Kermit Productions purchased $44,000 worth of stock in the Enterprise Company in 2010. In 2014, the stock was sold for $87,000. Which one of the following is one effect of this transaction on the statement of cash flows if the indirect method is used during 2014 An addition of $43,000 in the investing activities section A subtraction of $43,000 in the investing activities section A subtraction from net income of $43,000 in the operating activities section An addition to net income of $87,000 in the operating activities section QUESTION 7 In addition to cash flows that occurred during the period, which of the following amounts listed below appear on the statement of cash flows prepared using the direct method? 1. Beginning balance of cash and cash equivalents H. Ending balance of cash and cash equivalents III. Net income I and II Oll and III I and III OLII and III QUESTION 8 During 2014, Thomas Windows completed the following transactions Purchased equipment for $41,000 cash that will be depreciated over 10 year life Sold equipment that had an original cost of $46,000 and accumulated depreciation of $43,000 for $7,000 cash The January 1, 2014 balance in the accumulated depreciation account was $134,000 and the December 31, 2014 balance was $145,000 How much depreciation expense will Thomas Windows report on the company's 2014 statement of cash flows if the indirect method is used? $32,000 $54,000 $14,000 $57,000