Question: 1. The distinction between operating and nonoperating income relates to:
a. Primary activities of the reporting entity.
b. Consistency of income stream.
c. Continuity of income.
d. Reliability of measurements.
2. McGraft Co. reported net income of $135.000 (accrual basis) for the year ended December 31, 2016. January 1, 2016 balances in accounts receivable were $29,000 and in accounts payable were $26.000 year-end balances in accounts receivable were $30,000 and in accounts payable were $24.000. Assuming that all relevant information has been presented. McGraft's cash flows from operating activities would be:
a. $138.000.
b. $132.000.
c. $134,000.
d. $136.000.