The net income for the year ended December 31, 2013, for Oliva Company was $1,500,000. Additional information is as follows:

Depreciation on plant assets $600,000

Amortization of leasehold improvements 340,000

Provision for doubtful accounts on short-term receivables 120,000

1- Interest paid on short-term borrowings 100,000

Based solely on the information given above, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2013?

	a.	$2,640,000.
	b.	$2,660,000.
	c.	$2,800,000.
	d.	$2,560,000.

2-

Link Co. purchased machinery that cost $1,350,000 on January 4, 2011. The entire cost was recorded as an expense. The machinery has a nine-year life and a $90,000 residual value. The error was discovered on December 20, 2012. Ignore income tax considerations.

Link's income statement for the year ended December 31, 2012, should show the cumulative effect of this error in the amount of

	a.	$1,210,000.
	b.	$1,070,000.
	c.	$0.
	d.	$930,000.