1-

Edgar Inc. reported net income for calendar 2018 of $3,500,000. Additional information follows:

Impairment of goodwill................................................ $ 30,000 Depreciation on plant assets....................................... 1,100,000 Long-term debt:

Bond premium amortized ............................................ 45,000

Interest expense ......................................................... 600,000

Bad debts expense ..................................................... 75,000

Based on the above information, the cash provided by operating activities (indirect method) for calendar 2018 is a) $4,750,000. b) $4,730,000.

c) $4,715,000.

d) $4,660,000.

2- Edmund Corp. reported net income for calendar 2018 of $300,000. Additional information follows:

Depreciation on property, plant and equipment ..........$150,000

Bad debts expense..................................................... 55,000

Purchase of equipment............................................... 25,000

Interest paid on long-term bonds ................................15,000

Loss on sale of equipment..........................................85,000

Based on the above information, the cash provided by operating activities (indirect method) for calendar 2018 is a) $565,000. b) $590,000.

c) $605,000.

d) $630,000.

3-

During calendar 2018, Marcellus Inc. sold equipment for $168,000. The equipment had cost $252,000 and had a book value of $144,000 at the time of sale. Accumulated Depreciation Equipment was $688,000 at Dec 31, 2017 and $736,000 at Dec 31, 2018. Therefore, Depreciation Expense (Equipment) for 2018 was

a) $60,000.

b) $96,000.

c) $156,000.

d) $192,000.