1. A firm has beginning retained earnings of $143,000 and ending retained earnings of $191,500. What is the amount of dividends paid if the firm earned a net income of $72,000?
a. $48,500
b. $72,000
c. $58,500
d. $21,000
e. $23,500
2. Aker Company had beginning net fixed assets of $670,000 and ending net fixed assets of $910,000. Assets valued at $75,000 were sold during the year. Depreciation was $62,000. What is the amount of net capital spending?
a. $240,000
b. $315,000
c. $302,000
d. $377,000
e. $227,000
3. At the beginning of the year, long-term debt of a firm is $370,000 and total debt is $495,000. At the end of the year, long-term debt is $415,000 and total debt is $628,000. The interest paid is $20,000. What is the amount of the cash flow to creditors?
a. $45,000
b. $65,000
c. $20,000
d. -$45,000
e. -$25,000