3) When using the indirect method to prepare the operating section of a statement of cash flows, a gain on the sale of a building would be subtracted from net income in the operating activity section. The cash proceeds from the sale of the building will cause an increase to cash in the investing activities section of a statement of cash flows. (answer True or False)

4) Significant noncash investing and financing activities must be reported in the footnotes to the financial statements. (answer True or False)

5) Stock splits and stock dividends are both examples of a noncash investing and financing activity. (answer True or False)

6) Income tax payable is computed by multiplying taxable income times the current tax rate. (answer True or False)