26) Felix Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Felix Company Income Statement Year Ended December 31, 2015 S245,000 2,000 5,000 Sales Revenue Interest Revenue Gain on Sale of Plant Assets Total revenues and gains Cost of Goods Sold Salary Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses Net Income (loss) $252,000 118,000 43,000 13,000 25,000 1,500 5,500 206,000 $46,000 Additional information provided by the company includes the following: 1) Current assets, other than cash, increased by $24,000 2) Current liabilities decreased by $1,000 How much is the net cash provided by operating activities? A) $34,000 B) $29,000 C) $21,000 D) $39,000 27) Martin Company is preparing its statement of cash flows using the indirect method. During the year, they sold equipment for $5,990 cash. The net book value of the asset prior to sale was $5,550 Which of the foll-ing statements is true? A) The cash reept of $5,990 would be shown as a positive cash flow in the investing activities B) The gain on sale of $440 would be shown as a positive cash flow in the financing activities C) The gain on sale of $440 would be added back to net income in the operating activities D) The book value of the assets sold would be shown as a negative cash flow in the investing section section. section. activities