Multiple choice question based on cash flow statement.
1. If a gain of $10,000 is incurred in selling (for cash) office equipment having a book value of $100,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a. $90,000.
b. $110,000.
c. $100,000.
d. $10,000.
2. Flynn Company reported a net loss of $20,000 for the year ended December 31, 2008. During the year, accounts receivable decreased $10,000, merchandise inventory increased $16,000, accounts payable increased by $20,000, and depreciation expense of $10,000 was recorded. During 2008, operating activities
a.used net cash of $4,000.
b.used net cash of $16,000.
c.provided net cash of $4,000.
d.provided net cash of $16,000.