26) The statement of cash flows reports: A) Changes in equity. B) Assets, liabilities, and equity. C) Re D) Equity, net income, and dividends. E) Cash inflows and cash outflows for an accounting period. venues, gains, expenses, and losses. 27 27) A cash equivalent is: A) Generally within 12 months of its maturity date. B) An investment readily convertible to a known amount of cash. C) Is not considered highly liquid. D) Another name for cash. E) Close to its maturity date but its market value may still be affected by interest rate changes 28) When preparing a statement of cash flows using the indirect method, which of the following is correct? A) Proceeds from the sale of equipment should be added to net income in the operating activities section. B) A loss on the sale of land should be added to net income in the operating activities section section. activities section. a source of cash in the financing activities section. C) The issuance of a stock dividend should be a use of cash in the financing activities D) The declaration of a cash dividend should be a use of cash in the financing E) The purchase of land and a building by issuing a long-term note payable should be 29) A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. An examination of the company's current assets and current liabilities showed the following chang result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200, accounts payable increased $3,400. Calculate the net cash provided or used by operating activities. es as a A) $141,000. B) $88,600 C) $156,600 D) $96,600. E) $148,600