26. CSO: 1A1d LOS: 1A1e
　　Selected financial information for Kristina Company for the year just ended is shown below.
　　Net income $2,000,000
　　Increase in accounts receivable 300,000
　　Decrease in inventory 100,000
　　Increase in accounts payable 200,000
　　Depreciation expense 400,000
　　Gain on the sale of available-for-sale securities 700,000
　　Cash receivable from the issue of common stock 800,000
　　Cash paid for dividends 80,000
　　Cash paid for the acquisition of land 1,500,000
　　Cash received from the sale of available-for-sale 2,800,000
　　securities
　　Kristina’s cash flow from investing activities for the year is
　　a. $(1,500,000).
　　b. $1,220,000.
　　c. $1,300,000.
　　d. $2,800,000.
　　27. CSO: 1A1d LOS: 1A1e
　　For the fiscal year just ended, Doran Electronics had the following results.
　　Net income $920,000
　　Depreciation expense 110,000
　　Increase in accounts payable 45,000
　　Increase in accounts receivable 73,000
　　Increase in deferred income tax liability 16,000
　　Doran’s net cash flow from operating activities is
　　a. $928,000.
　　b. $986,000.
　　c. $1,018,000.
　　d. $1,074,000.
　　10
　　28. CSO: 1A1d LOS: 1A1e
　　Three years ago, James Company purchased stock in Zebra Inc. at a cost of $100,000. This stock was sold for $150,000 during the current fiscal year. The result of this transaction should be shown in the Investing Activities Section of James’ Statement of Cash Flows as
　　a. Zero.
　　b. $50,000.
　　c. $100,000.
　　d. $150,000.
　　29. CSO: 1A1d LOS: 1A1e
　　Madden Corporation’s controller has gathered the following information as a basis for preparing the Statement of Cash Flows. Net income for the current year was $82,000. During the year, old equipment with a cost of $60,000 and a net carrying value of $53,000 was sold for cash at a gain of $10,000. New equipment was purchased for $100,000. Shown below are selected closing balances for last year and the current year.
　　Last Year Current Year
　　Cash $ 39,000 $ 85,000
　　Accounts receivable net 43,000 37,000
　　Inventories 93,000 105,000
　　Equipment 360,000 400,000
　　Accumulated depreciation - equipment 70,000 83,000
　　Accounts payable 22,000 19,000
　　Notes payable 100,000 100,000
　　Common stock 250,000 250,000
　　Retained earnings 93,000 175,000
　　Madden’s cash inflow from operating activities for the current year is
　　a. $63,000.
　　b. $73,000.
　　c. $83,000.
　　d. $93,000.
　　11
　　30. CSO: 1A1d LOS: 1A1e
　　Selected financial information for Kristina Company for the year just ended is shown below.
　　Net income $2,000,000
　　Increase in accounts receivable 300,000
　　Decrease in inventory 100,000
　　Increase in accounts payable 200,000
　　Depreciation expense 400,000
　　Gain on the sale of available-for-sale securities 700,000
　　Cash receivable from the issue of common stock 800,000
　　Cash paid for dividends 80,000
　　Cash paid for the acquisition of land 1,500,000
　　Cash received from the sale of available-for-sale securities 2,800,000
　　Assuming the indirect method is used, Kristina’s cash flow from operating activities for the year is
　　a. $1,700,000.
　　b. $2,000,000.
　　c. $2,400,000.
　　d. $3,100,000.