4. The first step in the preparation of the statement of cash flows requires the use of information included in which comparative financial statements? A) ) C) Income statements D) Statements of retained earnings Statements of cash flows Balance sheets 5. Cash equivalents are A) treasury bills, commercial paper, and money market funds purchased with excess cash B) investments with original maturities of three months or less. C) readily convertible into known amounts of cash. D) All of these answers are correct 6. A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) A) addition adjustment to net income in the cash flows from operating activities section cash outflow from investing activities. ) cash inflow from investing activities. cash inflow from financing activities. C) BOD