22. Depreciation is added back to net income in a statement of cash flows prepared using the indirect method because it: A. reduces net income but not cash. B. is a cash inflow. C. is a revenue. D. is a valuation concept. 23. Brighton, Inc., uses the indirect method to determine its net cash flows from operating activities. During the course of the Year, the company?s accounts receivable increased by $10,000 and its accounts payable decreased by $5,000. As a result of these two items, the calculation to determine cash flows from operating activities will be: A. increased by $5,000. B. decreased by $5,000. C. increased by $15.000. D. decreased by $15,000. 24. Which of the following statements is true regarding cash flows from financing activities? A. When companies borrow, cash outflows for financing activities have occurred. B. When companies receive dividends, cash inflows from financing activities have occurred. C. When companies repurchase their own stock, cash outflows for financing activities have occurred. D. When companies pay dividends, cash inflows from financing activities have occurred. 25. Cash flows from investing activities include all of the following except: A. a purchase of an automobile. B. a sale of a trademark. C. a purchase of stock of another company. D. an issuance of bonds. 26. A piece of equipment with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a cash inflow from investing activities is: A. $50,000. B. $5,000. C. $45,000 D. $0. This is a financing activity