Answer:
a. $74
Explanation:
The computation in the change in cash for the year is shown below:
Net income $100
Less: Purchase of Debt Securities -$7
Less: Amortization of Premium on Bonds payable -$4
Less: Purchase of Treasury Stock -$5
Less: cash Dividends paid -$10 {($100 - $92) + $2}
Change in Cash $74
Hence, the correct option is A. $74
We simply deduct all the items from the net income so that the change in cash could come
