Tournesol Inc. Income Statement Year Ended December 15, 2018 Sale Cost of goods sold Rent Expense Wages and Salaries Expense Amortization Expense Results of Sale of equipment Interest Expense Income Tax Expense Profit $ 100,000 $ (48,000) $ (6,000) $ (15,000) $ (4,000) $ (2,000) S (500) S (600) $ 23,900 Tournesol Inc. comparative balance sheet at December 12, 2018 2018 2017 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation - equipment Total Assets $ 27,000 $ 5,000 $ 22,000 $ 2,400 $ 37,000 $ (15,000) $ 78,400 S 1,000 $ 9,000 S 7,000 S 5,000 $ 45,000 $ (18,000) $ 49,000 Account Payable Wages and Salaries Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 11,000 $ 4,700 $ 2,800 S 5,500 $ 21,000 $ 12,000 $ 21,400 $ 78,400 $ 4,000 $ 5,500 $ 3,000 S 2,500 $ 22,000 $ 10,000 $ 2,000 $ 49,000 1 Additional Information: Equipment that cost $10,000 was sold for a certain amount in cash 2 New equipment was purchased during the year for $2,000 3 Dividends declared in 2018 totaled $4,500 Please prepare both an Indirect and Direct Cash Flow Statement to answer the questions below. Questions 1-11 are for the Cash Flow statement for Tournesol Inc. prepared using the indirect method. 01 What is the Total adjustment to reconcile profit to net cash provided by operations? A) $ 6,600 B) $ 10,600 C) $ 3,600 D) $ 10,000 E) none of the above 02 What is the Net cash generated or (used) by Investing activities? A) $ (1,800) B) $ 1,000 C) $ (1,000) D) $ 3,000 E) none of the above Q3 What is the Net Cash generated or (used) by Financing activities? A) $ 1,500 B) $ (1,500) C) $ (500) D) $ 500 E) none of the above Q4 By how much the change in Interest Payable has generated or (used) cash? A) $ 800 B) $ 500 $ (500) D) $ (800) E) none of the above C)