6. Which of the following items results in a cash inflow (increases cash)? a. a decrease in prepaid insurance (current asset) b. recording an increase in accumulated depreciation on factory equipment (long-term assets) c. borrowing cash from Wells Fargo Bank d. acquiring an investment in land (long-term asset) for cash. 7. When using the indirect method to calculate and report cash flow from operating activities for a corporation, net income is adjusted for the following except a. Gains or losses reported on the income statement. b. Changes in the dividends payable account on the balance sheet. c. Changes in non-cash current asset accounts on the balance sheet. d. Depreciation expense reported on the income statement. 8. Aaron, Inc. uses the indirect method to prepare its statement of cash flows. During the year 2021 Aaron's investing activities included cash spent for fixed asset purchases (necessary property. plant, and equipment replacement) $390,000. Its Free Cash Flow for the year 2021 was $510,000, and it had two adjustments to net income for an accounts payable increase of $53,000, and a gain on the disposal of a long-term asset of $33,000. Based on this data, Aaron's Net Income for the year ended December 31, 2021, was a. $814,000 b. $920,000 c. $880,000 d. $900,000. 9. On May 1, 2022, Elaine Industries' work in process inventory cost was $53,000. On May 31, 2022, work in process inventory cost was $29,000. During May 2022, the product (Direct Materials, Direct Labor & Factory Overhead) costs incurred to manufacture finished products was $240,000. If May 2022 beginning and ending finished goods inventories were $7,000 and $57,000 respectively, Elaine's cost of goods sold (COGS) for the month ended May 31, 2022, was a. $214,000 b. $183,000 c. $314,000 d. $264,000 10. During May 2022, Malkin Co. manufactured 78,000 product units with Direct Materials (DM) cost $146,000. Total Direct Labor (DL) Cost for manufacturing those 78,000 units was $87,000, and May 2022 Factory Overhead (FO) Cost is estimated to be $35,000. Malkin sold the same 78,000 units realizing a gross profit of $132,000 during May 2022. Malkin's total. Sales Revenue for the month of May 2022 was a. $268,000 b. $136,000 $400,000 d. $332,000 C. . If cost of goods sold is less than the cost of goods manufactured, which of the following is correct? a. Finished Goods Inventory has increased. b. Ending Finished Goods Inventory is less than beginning Finished Goods Inventory. c. Finished Goods Inventory has decreased. d. Beginning work in process (WIP) inventory is less than ending WIP inventory.