QUESTION 1 A company had net income of $252.000. Depreciation expense was $26,000. During the year, accounts receivable and inventory increased by $15.000 and $40.000, respectively. Prepaid expenses and accounts payable decreased by $2.000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a. $284.000 b. $305,000 c. $217,000 d. $224.000 QUESTION 2 The following information is available from the current period financial statements: Net income $175.000 28.000 Depreciation expense Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 The net cash flow from operating activities using the indirect method is a. $110,000 b. $184,000 c. $240,000 d. $166.000 QUESTION 3 On the statement of cash flows prepared using the indirect method. a $7,500 gain on the sale of fixed assets would be a. added to net income in converting the net income reported on the income statement to cash flows from operating activities O b. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends oc deducted from net income in converting the net income reported on the income statement to cash flows from operating activities d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends