The next two questions are based on the following information: A company had comparative balance sheets and income statement for the year 2010 as follows: Balance Sheets Jan. 1, 2010 Dec 31, 2010 $ 120 Inventory Cash Accounts receivable 160 200 49 $ 170 190 240 20 620 $ 400 (120 $ 500 280 5.800 Prepaid Insurance Total current assets Plant and equipment Accumulated depreciation Total assets Accounts payable. Income taxes payable.. Total current liabilities Long-term debt. Capital stock Retained earnings Total liabilities and equity $ 270 310 120 170 200 380 980 $ 300 50 350 150 220 260 3989 $1,000 Income Statement for Year 2010 Sales Expenses: Cost of goods sold $ 600 Depreciation. 50 Insurance 30 Loss (gain) on sale of equipment (20) Other expenses Income before taxes. Income taxes Net Income 810 190 80 110 C) $130 The cost of equipment sold during 2010 (on which a gain of $20 was recognized) was $50. 6) Cash provided by operating activities during the year 2010 amounted to: A) $170 B) $150 D) $120 E) $100 7) Which of the following is not a correct statement: A) Cash used to purchase plant and equipment during 2010 amounted to $150. B) Cash received from the sale of equipment during 2010 amounted to $70. C) Cash received from the issue of capital stock during 2010 amounted to $50. D) Cash received from the issue of long-term debt during 2010 amounted to $30. E) Cash used to pay dividends during 2010 amounted to $50