5. Lindsay Corporation had net income for 2015 of $2,500,000. Additional information is as follows:

Depreciation of plant assets $1,200,000

Amortization of intangibles 240,000

Increase in accounts receivable 420,000

Increase in accounts payable 540,000

Lindsay's net cash provided by operating activities for 2015 was

a. $4,060,000.

b. $3,940,000.

c. $3,820,000.

d. $2,180,000.

6. Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should

a. not be shown.

b. be shown as cash inflow from investing activities.

c. be shown as cash outflow from financing activities.

d. be shown as a deduction from net income in the cash flows from operating activities section.

7. Declaration by Company Z of a cash dividend on its common stock affects cash flows from operating activities under the direct and indirect methods as follows:

Direct Method Indirect Method

a. Outflow Inflow

b. Inflow Inflow

c. Outflow Outflow

d. No effect No effect