1 The statement of cash flows classifies cash receipts and payments as operating, nonoperating, financial, and extraordinary activities. True False 2 3 Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities. True False Use the indirect method to calculate the net cash provided (or used) by operating activities based on the following information: Profit Depreciation expense $60,000 7,200 Gain on sale of land 14,000 Decrease in inventory 3,500 Increase in accounts payable 5,500 Cash from land sale 9,200 $62,200 $14,000 $21,200 $14,700 $9,200