38. During 2016, Jaime LLC earned Income before Income Tax of $250,000. Ths company in a 36% tax bracket. Net Income reported by Jaime LLC 2016 on its income statement is A) $162.500 B) $87,500 C) $250,000 D) $337,500 39. Which of the following transactions would not create a cash flow? A) Purchase of treasury stock B) Issuing debt to acquire equipment Payment of dividend D) Sale of equipment at book value C) 40. Activity that increases and decreases long-term asset accounts are reported on the statement of cash flows as: A) investing activities. B) noncash activities C) operating activities D) financing activities. 41. When preparing the statement of cash flows using the indirect method, which statement is true? A) Increases in current liabilities are subtracted from net income B) Depreciation expense is subtracted from net income. C) Losses on the sale of long-term assets are added to net income. D) Decreases in current assets are subtracted from income The body of a statement of cash flows will not report 42. A) the beginning balance of cash during the period B) the ending balance of cash during the period C) net income if using the direct method D) whether cash was provided or used during the period 43. On the statement of cas A) shown as a cash inflow in the financing activities section. B) shown as a cash outflow in the investing activities section. C) shown as a cash outflow in the financing activities section. D) subtracted from net income in the operating activities section. h flows, paying off bonds at maturity during the year is