1) If land costing $150,000 was sold for $205,000, the $55,000 gain on the sale would be added to net income in converting the net income reported on the income statement to cash flows from operating activities for the statement of cash flows prepared by the indirect method.

True

False

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2) Net income was $52,000 for the year. The accumulated depreciation balance increased by $17,000 over the year. There were no sales of fixed assets or changes in non-cash current assets or liabilities. The cash flow from operations is $35,000

True

False

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3) The Investing and Financing sections for the indirect and direct statement of cash flows are the same for the same period of the same company.

True

False