9. The indirect method of presenting cash flows from operating activities begins with: a. net income. b. the balance in the Cash account. c. a listing of the outflows of cash for operating activities. d. a listing of the inflows of cash from operating activities.

5. The Raymond Corporation reported $11,000 of net income for 2020 and also uses the visual inspection method for completing the statement of cash flows. The following additional information relates to Raymond for the year:

Purchase of Equipment	$ 35,000
Decrease in inventory	80
Loss on disposal of equipment	900
Proceeds from disposal of equipment	1,500
Depreciation expense	1,200
Increase in accounts payable	290
Proceeds from disposal of Machinery	1,500
Decrease in deferred income tax liability	210

Refer to Exhibit 21-1. What is Raymond's net cash provided (used) by investing activities?

	a.	$3,000 net cash provided
	b.	$32,000 net cash provided
	c.	$35,000 net cash used
	d.	$32,000 net cash used

4. Selected accounting information regarding the Chime Corporation in 2020 follows:

Net cash provided by operating activities	$800,000
Common stock issued for cash	400,000
Proceeds from sale of building	300,000

In 2020, Chime should report a net increase in cash of

	a.	$1,100,000.
	b.	$1,600,000.
	c.	$1,500,000.
	d.	$1,700,000.

1. The Red Blast Company uses the visual inspection method for completing the statement of cash flows. The following information relates to the Red Blast Company:

Increase in accounts receivable	$ 80
Decrease in inventory	100
Net income	12,000
Depreciation expense	2,000
Decrease in accounts payable	380

What is the net cash provided by operating activities?

	a.	$12,415
	b.	$ 9,065
	c.	$13,640
	d.	$11,415