1. Dixie’s sales for the year were $1,678,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,141,000, $304,000, and $143,000, respectively. In addition, the company had an interest expense of $74,000 and a tax rate of 34 percent. What is the operating cash flow for the year?
a) $227,560
b) $271,420
c) $223,330
2. Which of the following transactions does not affect cash during a period?
a. Increase in amortization expense
b. Payment of an accounts payable
c. Issuance of bonds
d. Purchase of a long-term investment