5. MC.13-73

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

the cash flows from operating activities section

the cash flows from financing activities section

the cash flows from investing activities section

a separate schedule

6. MC.13-75

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

depreciation expense

dividends declared and paid

a loss on the sale of equipment

gain on sale of land

7. MC.13-79

On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be

added to net income in converting the net income reported on the income statement to cash flows from operating activities

deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

deducted from net income in converting the net income reported on the income statement to cash flows from operating activities

8. MC.13-80

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

a. $92,000

b. $169,000

c. $105,000

d. $118,000