A$.$ Increase assets by $$375,000$ increase, equity by $$375,000.$

B$.$ Increase assets by $$150,000,$ increase net income by $$150,000.$

C$.$ Increase assets by $$150,000,$ increase equity by $$150,000.$

D$.$ Both $B$ and $C.$

$7.$ Flint Company issued $2,000$ shares of $$10$ par value common stock at a market price of $$16.$

As a result of this accounting event, the amount of stockholders' equity would

A$.$ increase by $$12,000.$

B$.$ be unaffected.

C$.$ increase by $$32,000.$

D$.$ increase by $$20,000.$

$8.$ Madison Co$.$ paid dividends of $$3,000$;$$6,000$; and $$10,000$ during $2007,2008$ and $2009,$ respectively. The company had $500$ shares of preferred stock outstanding that paid a $$10$ per share cumulative dividend. The amount of dividends received by the common shareholders during $2009$ would be:

A$.$ $$5,000.$

B$.$ $$4,000.$

C$.$ $$3,000.$

D$.$ $$2,000.$

$9.$ On January $1,2007,$ the Accounts Receivable balance was $$9,000$ and the balance in the Allowance for Doubtful Accounts was $$700.$ On January $15,2007$ a $$200$ uncollectible account was written$-$off. The net realizable value of accounts receivable immediately after the write$-$off is:

A$.$ $$9,500.$

B$.$ $$8,500.$

$.$ $$8,300.$

D$.$ $$9,200.$

On January $1,2007$ Grant Company had a $$4,000$ balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During $2007,$ Grant provided $$25,000$ of service on account. The company collected $$24,000$ cash from account receivable. Bad debts are estimated to be $2\%$ of sales on account.

$10.$ Based on this information, the amount of cash flow from operating activities that would appear on the $2007$ statement of cash flows is:

A$.$ $$24,850.$

B$.$ $$25,000.$

C$.$ $$22,900.$

D$.$ $$24,000.$

$11.$ The amount of bad debts expense to recognize on the $2007$ income statement is:

A$.$ $$80.$

B$.$ $$250.$