question 7 and 8

7. The following information is available from the current period financial statements: Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $175,000 28,000 16,000 21,000 The net cash flow from operating activities using the indirect method is a. $166,000 b. $184,000 c. $110,000 d. $240,000 A building with a book value of $54,000 is sold for $63,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows: a. an increase of $54,000 from investing activities b. an increase of $63,000 from investing activities and a deduction from net income of $9,000 c. an increase of $9,000 from investing activities d. an increase of $54,000 from investing activities and an addition to net income of $9,000