Multiple Choice (REQUIRED - 20 POINTS) Identify the choice that best completes the statement or answers the question. 1. On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include a receipts from the sale of investments b. amortization of premium on bonds payable c. payments for cash dividends d. receipts from the issuance of capital stock 2. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a. an increase in inventory b. a decrease in accounts payable c. preferred dividends declared and paid d. a decrease in accounts receivable 3. On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be a. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities b. added to net income in converting the net income reported on the income statement to cash flows from operating activities added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends d. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends 4. The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: Cash Accounts receivable Inventories Prepaid expenses Accounts payable (merchandise creditors) End $ 50,000 112,000 105,000 4,500 75,000 Beginning $ 60,000 108,000 93,000 6,500 89,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? a. S198,000 b. $324,000 c. $352,000 d. $296,000