112. When prices are rising, a LIFO liquidation will
     1. always decrease income
     2. always increase income
     3. sometimes increase income and sometimes decrease income

113. If a company's total assets decreased while liabilities and common stock were unchanged, and no dividends were paid, then
     1. cash flow from operating activities was greater than cash flow from investing activities
     2. retained earnings were less than net income during the period.
     3. the company must have purchased assets with cash.
     4. revenues were less than expenses.

Assets	$1,200,000
Liabilities	$800,000
Net income	$100,000
Retained earnings	$250,000

118) Stockholders' claims to the company's resources amount to:

A) $1,200,000. B) $400,000. C) $250,000. D) $800,000.

119. Of the following inventories 1) Raw Materials Inventory, 2) Work in Process Inventory, 3) Finished Goods Inventory, how many would you find in a Sales Office?
     1. Three B) None C) One D) Two

120. The Direct Method and Indirect Method of Reporting Cash Flows
     1. apply only to Cash from Operations
     2. can apply to all parts of the cash flow statement