The following information is reported in the Operating Activities category of Gateway's statement of cash flows for 2017 : Which one of the following conclusions can be assumed from the information provided? a. Gateway purchased more merchandise than it sold in 2017. X b. Cash payments for merchandise purchases were less than the amount of merchandise purchased on credit during 2017. c. Gateway used the direct method to determine cash flows from operating activities. d. Cash payments for merchandise exceeded cost of goods sold by $200,000. A company forgot to record four adjustments during 2017. Which one of the following omissions of adjustments will overstate assets? a. Prepaid insurance is not reduced for the portion of the policy that has expired during the period. b. Interest on monies borrowed has not yet been recorded. C. Income taxes owed but not yet paid are ignored. X d. Sales made during the last week of the period are not recorded. Which of the following situations does not require an adjusting entry at the end of May? a. On May 1, Bolton Industries began delivery service to a client who will pay at the end of a three-month period. b. At the end of May, Bolton Industries pays the custodian for May office cleaning services. X C. On May 1, Bolton Industries paid rent for six months on its office building. d. On May 1, Bolton Industries purchased delivery equipment with an estimated useful life of six years