2. In the statement of income and expenses of a company, the following two items appear, among others: Depreciation expense for the year $75,000 Loss on sale of equipment 25,000 How are these two items presented in the operational activities of the EFE (SCF) of the company, which uses the indirect method? A. These two items do NOT affect cash. Therefore, they are not presented in the EFE. b. They do not affect operational activities but investment activities. c. $100,000 is added to net income or net loss. d. $ 50,000 is added to net income or net loss. 3 to 6. Below are four items that could appear in the operational activities prepared under the indirect method. For each, write "A" if the item is added to net income and write "B" if the item is subtracted from net income. Write "C" if it does not affect operational activities. 3. Amortization of discount in bonds payable and promissory notes. 4. Increase in accounts receivable. 5. Increase in debts due to unearned revenues. 6. Increase in dividends payable