For each of the following activities, indicate if the activity represents

Question #1 (2 points) For each of the following activities, indicate if the activity represents:A. A cash inflow. B. A cash outflow. C. Both a cash inflow and a cash outflow D. Neither an inflow or outflow._____1. Purchased merchandise inventory for cash._____2. Paid accounts payable._____3. Issued shares of common stock in exchange for equipment._____4. Collected an account receivable._____5. Recorded depreciation expense._____6. Acquired a building paying 10% down and financing the balance._____7. Accrued interest expense._____8. Declared a dividend on the common stock._____9. Exchanged machinery for office furniture.____10. Paid bond interest.=================================================================Question #2 (2 points) For the following, indicate the adjustment to be made, if any, to net income in the operating section of the cash flow statement prepared on the indirect method:(A) Increase net income (B) Decrease net income(C) No adjustment (investing activity). (D) No adjustment (financing activity)_____1. Accounts receivable increased by $5,000 from last year to this year._____2. Depreciation was $30,000._____3. Prepaid Expenses decreased $10,000._____4. Accounts Payable increased $20,000._____5. Merchandise inventory increased by $15,000._____6. Office furniture decreased $8,000._____7. Sold a building at a gain of $5,000._____8. Issued a cash dividend._____9. Amortization of intangible assets was $10,000._____10. Purchased 100 shares of Apple Computer common stock for $13,000.Question #3 (2 points) For the following activities, indicate in which section, if any, of the cash flow statement, in they would appear:A) Operating. B) Investing. (C) Financing. (D) Non-cash Investing and Financing Activities (E) Would not appear._____1. Redeemed bonds payable by issuing preferred stock._____2. Purchased treasury stock._____3. Collected accounts receivable._____4. Made cash sales._____5. Acquired machinery for cash._____6. Issued preferred stock for cash._____7. Borrowed funds from the bank and issued a three-year note._____8. Sold office equipment for cash._____9. Paid a dividend.____10. Loss on sale of long-term assets.=================================================================Question #4 (4 points)The following information is available for the Sydney Company:Sydney CompanyIncome StatementFor the Year Ended December 31, 2014Service Revenue $ 900,000Operating Expenses 700,000 Net Income before Income Tax $ 200,000Income Tax Expense 80,000 Net Income $ 120,000The following balance sheet information is also available for 2014 and 2013 2014 2013Cash $ 330,000 $ 70,000Accounts Receivable 120,000 100,000Merchandise Inventory 40,000 50,000Prepaid Rent 0 10,000Accounts Payable 70,000 60,000Income Taxes Payable 10,000 15,000In addition the following transactions took place during 2014:1. Common stock was issued for $100,000 cash.2. Long-term investments were sold for $50,000.3. Cash dividends of $80,000 were paid.4. Operating expenses included a $25,000 loss on the sale of investments and $30,000 depreciation.Required:Prepare in good form for Sydney Company, a cash flow statement for 2014 using the indirect method.