Softbyte Corporation

Comparative Balance Sheets

December 31, 2012 and 2011

2012 2011

Assets

Cash $174,000 $117,000

Accounts Receivable 93,000 81,000

Merchandise Inventory 609,000 534,000

Equipment 333,000 297,000

Accumulated Depreciation- Equipment (156,000) (102,000)

Total Assets $1,053,000 $927,000

Liabilities & Equity

Accounts Payable $69,000 $96,000

Income taxes payable 27,000 24,000

Common Stock, $2 par value 582,000 558,000

Paid-in capital in excess

of par value, common stock 198,000 162,000

Retained Earnings 177,000 87,000

Total Liabilities & Equity $1,053,000 $927,000

Softbyte Corporation

Income Statement

For Year Ended December 31, 2012

Sales $1,992,000

Cost of goods sold 1,194,000

Gross profit 798,000

Operating expenses

Depreciation expense $54,000

Other expenses 501,000 555,000

Income before taxes 243,000

Income taxes expense 42,000

Net income $201,000

Additional Information on Year 2012 Transactions

Purchased equipment for $36,000 cash.Issued 12,000 shares of common stock for $5 cash per share.Declaredandpaid$111,000incashdividends.

1. 1. What is the net cash provided by operating activities?

A. $119,000

B. $122,000

C. $135,000

D. $144,000

1. 2. What is the net cash used by investing activities?

A. $(25,000)

B. $(28,000)

C. $(36,000)

D. $(39,000)

1. 3. What is the net cash used by financing activities?

A. $(45,000)

B. $(51,000)

C. $(53,000)

D. $(68,000)