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42. Which of the following items would be included in the operating activities section of a statement of cash flows prepared under the direct method?

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42. Which of the following items would be included in the operating activities section of a statement of cash flows prepared under the direct method? a. Sale of an investment that had been accounted for using the equity method b. Gain on the sale of land c. Purchase of treasury shares d. Cash lost due to bad debt expense e. None of these answers are correct. 43. Greene Industrials issued bonds with a face value of $10 million for $9.5 million in 2020. During the year, $40,000 of the bond discount was amortized. On its 2020 statement of cash flows prepared using the indirect method, Greene will report_ - related to these bonds. a. an investing cash inflow and a decrease to net income b. an investing cash inflow and an increase to net income c. a financing cash inflow and a decrease to net income d. a financing cash inflow and an increase to net income e. a financing cash inflow but no effect on net income, because bond discount is related to carrying value of the bond, not to movement of cash Use this information for the next two questions. A portion of The Procter & Gamble Company's 2019 cash flow statement is shown below. Consolidated Statements of Cash Flows 3,966 Amounts in millions: Years ended June 30 2019 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR S2,569 OPERATING ACTIVITIES Net earnings Depreciation and amortization 2,824 Loss on early extinguishment of debt Share-based compensation expense 515 Deferred income taxes (411) Gain on sale of assets (678) Goodwill and indefinite-lived intangible impairment charges 8,345 Change in accounts receivable (276) Change in inventories (239) Change in accounts payable, accrued and other liabilities 1,856 Change in other operating assets and liabilities (973) Other 313 during 2019. 44. The accounts receivable balance a. increased b. decreased

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