QUESTION 4 Entity reported net income of $125,000 for the current year and uses the indirect method to report operating activities cash flow. Taxes Payable increased by $5,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Taxes Payable. Cash Flows From Operating Activities Add to Net Income O Cash Flows From Operating Activities-Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash QUESTION 5 In a common size balance sheet, the 100 percent figure is total assets total liabilities total property, plant and equipment total current assets QUESTION 6 When a company declares a cash dividend on its common stock to be paid at a later date, which of the following is correct? no journal entry is required assets do not change, labilities increase, and stockholders' equity decreases assets decrease, liabitis decrease, and stockholders' equity does not change. assets, liabilities, and stockholders equity do not change