9. A company had net income of $252,000. Depreciation expense is $26,000. During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities? $217,000. $224,000. $284,000. $305,000. 10. Which of the following should be included in an Operating Section of a Statement of Cash flows using the Direct Method? Net Income as a source (+) to cash A decrease in Accounts Receivable as a source (+) of cash An increase in Accounts Payable as a source (+) of cash Cash received from customers as a source (+) to cash What is the best way to verify the existence of Accounts Receivable during an audit? The sending of positive confirmations to client customers The review of client billings The sending of blank confirmations to client customers A, B, and C The review of cash receipts subsequent to the year end of the period auditing What would be the BEST method to verify the existence of a client's cash balance in an audit? Review of the client's General Ledger Review of a Bank Statement furnished by client Review of a Bank Statement, Bank Reconciliation, and General Ledger The receipt of a Confirmation that was sent to the client's bank by the auditor 13. Beavis incorporated purchases equipment for $100,000 with the proceeds of a $100,000 note that is installments over a 5 year period. This transaction will be reflected on Beavis' Cash flow statements as: Increase in liabilities in their Operating section. Increase in Property Plant and Equipment in their Financing Section. Increase in Property Plant and Equipment in their Investing Section. Increase in Property Plant and Equipment in their Investing Section and Note Payable in t Financing