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If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to
If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to arrive at net cash flows from operating activities? O a. Decrease in accounts payable O b. Increase in inventory Oc. Cash proceeds from Sale of Fixed Asset Od. Increase in bonds payable Oe. Loss on Sale of Fixed Asset Assuming that the indirect method is used, which of the following would be deducted from net income to arrive at net cash flows from operating activities? Oa. Increase in Inventory O b. Depreciation Expense Oc. Loss on Disposal of Equipment Od. Loss on Sale of Investment For this question, indicate where the transaction would be classified on the statement of cash flows. Assume that the indirect method is used to prepare the statement Purchase of Equipment by issuing common stock to seller Oa. Operating activities section b. Investing activities section: added c. Financing activities section. Od. Investing activities section: subtracted Oe. Schedule of non-cash investing and financing transactions
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