PROBLEM 1(this aremultiple-choice questionson your UBIAN-LMS) Cash flows from operating activities a.Net income will be increased or adjusted upward. b.Net income will be decreased or adjusted downward. Cash flows from investing activities c.Increase as a result of cash inflows. d.Decrease asa result of cash outflows. Cash flows from financing activities e.Increase as a result of cash inflows. f.Decrease as a result of cash outflows. The statement of cash flows is not affected g.Not required to be reported in the body of the statement. Instructions For each transaction listed below, CHOOSE THE LETTER/LETTERS(as there are questions with multiple letters) from abovechoicesthat BEST describe(s) the effect of the transaction on a statement of cash flows for the year ending December 31, 2021. (Ignore any income tax effects.) ____ 1.Preferred stock with a carrying value of P44,000 was redeemed for P50,000 on January 1, 2021. ____ 2.Uncollectible accounts receivable in the amount of P3,000 were written off against the allowance for doubtful accounts balance of P12,200 on December 31, 2021. ____ 3.Machinery which originally cost P3,000 and has a book value of P1,800 is sold for P1,400 on December 31, 2021. ____ 4.Land is acquired through the issuance of bonds payable on July 1, 2021. ____ 5.1,000 shares of stock, stated value P10 per share, are issued for P25per share in 2021. ____ 6.An appropriation of retained earnings for treasury stock in the amount of P35,000 is established in 2021. ____ 7.A cash dividend of P8,000 is paid on December 31, 2021. ____ 8.The portfolio of long-term investments (available-for-sale)is at an aggregate market value higher than aggregate cost at December 31, 2021. ____ 9.The entity reported an income from sales of P200,000 and expenses of P50,000. ____ 10.The realizable valueof merchandise inventory changes fromits cost of 750,000 to 700,000 due to spoilage.