Olsen Company prepares its statement of cash flows using the indirect method. Indicate whether the item would be added to net income (increase), deducted from net income (decrease), or has no effect on net income to determine net cash flows from operating activities. Depreciation expense, which is included on the income statement. Increase No effect Incorrect. Please review Top Ten Concept # 5. Decrease All of the options listed None of the options listed Goods in transit should be included in the inventory of the buyer when the terms are FOB destination transportation company when the terms are FOB destination none of the options listed seller when the terms are FOB shipping point. Incorrect. Please review Top Ten Concept # 8. buyer when the terms are FOB shipping point. Working capital includes all of the following accounts except: Cash Incorrect. Please review Top Ten Concept # 9. Retained Earnings Merchandise Inventory Accounts Receivable Accounts Payable Equipment was purchased for $51,000 on January 1, 2011. Freight charges amounted to $2,100 and there was a cost of $6,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $9,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2012, if the straight-line method of depreciation is used? $8,580 $20,040 $17,160 $10,020. Incorrect. Please review Top Ten Concept # 11