12. Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method? a a decrease in inventory b. a decrease in accounts payable e. preferred dividends declared and paid d. a decrease in accounts receivable 13.Cash flows from financing activities, as part of the statement of cash flows, include payments for dividends. a. True b. False 14. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a. depreciation expense b. an increase in inventory c. a gain on the sale of equipment d. dividends declared and paid 15.Accounts receivable from sales to customers amounted to $40,000 and S32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is a. $118,000. b. $110,000. c. $102,000. d. $150,000. 16.Cash flows from investing activities, as part of the statement of cash flows, include receipts from the sale of land. a. True b. False