Multiple choice

1. Panjim's 2005 cash flow from operations is:

• A net outflow of $90,000

• A net inflow of $90,000

• A net inflow of $85,000

• A net outflow of $85,000

2. Panjim's 2005 cash flow from investing activities is:

• A net outflow of $7,000

• A net inflow of $3,000

• A net inflow of $7,000

• A net outflow of $3,000

3. Panjim's 2005 cash flow from financing activities is:

• A net outflow of $91,000

• A net inflow of $86,000

• A net outflow of $86,000

• A net inflow of $91,000

4. Panjim recorded an interest expense of $6,000 for 2005. Which one of the following line items would be included in the operating section of the Panjim's 2005 indirect method statement of cash flows?

• Add increase in interest payable...$1,000

• Subtract increase in interest payable...($1,000)

• Add increase in interest payable...$6,000

• Subtract decrease in interest payable...($5,000)