Question
Lincoln Restaurants reported net income in 2014 of $45.9 million and depreciation expense of $48.8 million. It also reported additions to property and equipment of
Lincoln Restaurants reported net income in 2014 of $45.9 million and depreciation expense of $48.8 million. It also reported additions to property and equipment of $162.9 million. Which of the following disclosures would appear on the 2014 statement of cash flows?
Depreciation of $48.8 million would be deducted from net income under operating activities and the $162.9 million would be added under investing activities. | ||
Depreciation of $48.8 million would be added to net income under operating activities and the $162.9 million would be added under investing activities. | ||
Depreciation of $48.8 million would be added to net income under operating activities and the $162.9 million would be deducted under investing activities. | ||
Depreciation of $48.8 million would be deducted from net income under operating activities and the $162.9 million would be deducted under investing activities. |
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