The primary purpose of a statement of cash flows is to provide relevant information about: (a) The cash receipts and cash disbursements of an entity during a period. (b) An entity's ability to meet cash operating needs. (c) An entity's ability to generate future positive net cash flows. (d) Differences between net income and associated cash receipts and 1. disbursements In a statement of cash flows, which of the following would increase cash flows from operating activities using the direct method? (a) Gain on sale of equipment. (b) Gain on early extinguishment of debt. (c) Change from straight line depreciation to accelerated depreciation. (d) Dividends received from investments. 2. 3. In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities? ITEMS APPEARING ON A STATEMENT OF CASH FLOWS A. Payments to retire mortgage notes B. Interest payments on mortgage notes. C. Dividend payments. (a) A only. (b) B and C only (c) A and C only (d) A, B, and C