13)Smith Company owns 56 million shares of stock of Jones Company classified as available for sale. During 2016, the fair value of those shares increased by $34 million. What effect did this increase have on Smith 's 2016 statement of cash flows?

a)No effect.

b)Cash from operating activities increased.

c)Cash from investing activities increased.

d)Cash from financing activities increased.

14)On June 4, Smith Corporation issued $400 million of bonds for $386 million. During the same year, $1 million of the bond discount was amortized. In a statement of cash flows prepared by the indirect method, Smith Corporation should report:

a)		A financing activity of $400 million.
b)		A deduction from net income of $1 million.
c)		An addition to net income of $1 million.
d)		An investing activity of $386 million.

15)When the total expenses over the life of an operating lease are compared to the total expenses over the life of a finance lease, one will find that:

a)The expenses of the finance lease and operating lease are equal.

b)No meaningful comparison can be made.

c)The expenses of an operating lease are greater than the expenses of a finance lease.

d)The expenses of a finance lease are greater than the expenses of the operating lease.

16)Which of the following is not true regarding the statement of cash flows?

		a)The indirect method derives cash flows indirectly by starting with sales revenue and "working backwards" to convert that amount to a cash basis.
b)		Noncash transactions sometimes are reported in conjunction with the statement.
c)		Either the direct or the indirect method can be used to calculate and report the net cash increase or decrease from operating activities.
d)		The statement of cash flows provides information about cash flows that the other statements either do not provide or provide only indirectly.