5. A purchase of Treasury stock from the stockholders would be reported in the Investing Activities section of the Statement of Cash Flows.

1. True b. False

6. Jamison Company had Net Income for the year of $210,000. Prepaid Expenses increased by $9,000 during the year, Inventory decreased by $8,000, and Taxes Payable decreased by $2,000. What was the Net Cash Flow from Operating Activities using the Indirect Method (assume that no other account balances changed that would impact the computation).

a. $207,000 c. $213,000

b. $211,000 d. $225,000