16) 16) Doug Smith Industrie 18 Smith Industries purchased a warehouse for $55 million at January 1, 2013 Warehouse has an estimated useful life of 10 years. Doug Smith Industries mitially used the sum-of-the-years-digits depreciation method, and recorded umulated depreciation through December 31, 2017 (3 years) equal to $27 million of January 1, 2018, management decided to change depreciation methods to the traight-line method of depreciation Doug Smith should record depreciation expense for the 2018 year equal to: A) S4 million B) 57 million C) $2.8 D) $5.5 million million During the year, cash and cash equivalents increased by $300 million. Cash flows from investing and financing activities in the aggregate) created positive case Inflow totaling $500 million during the year. What were net cash flows from operating activities in the statement of cash flows? A) Outflow of $200 million B) Inflow of $200 million C) Inflow of $800 million. D) Outflow of $800 million 18) Interest payments (expense) on long-term debt are reported in a statement of cash flows as: A) An investing activity. B) A borrowing activity. C) An operating activity. D) A financing activity. 19) S Company reported net income for 2018 in the amount of $400,000. The company's financial statements also included the following 19) Increase in accounts receivable Decrease in inventory Increase in accounts payable Depreciation expense Gain on sale of land $ 80,000 60,000 200,000 104,000 148,000 What is net cash from operating activities under the indirect method (amounts presented below as "absolute value")? A) S432,000. B) S536.000 C) $580,000. D) $832,000 20) How is depreciation of equipment reported in a statement of cash flows that is prepared using the indirect method? A) A decrease in cash flows from investing activities. B) An increase in cash flows from investing activities. C) A deduction from net income in arriving at cash flows from operating activities. D) An addition to net income in arriving at cash flows from operating activities