True or False

1. For both financing and investing activites, items on the statement of cash flows should be prepared gross rather than net.

2. The direct and indirect method can yield different figures for thenet cash provided by operating activites.

3. Only changes in noncurrent accounts are analyzed for a statement of cash flows.

3. If a company is profitable, the net cash flow must be positive.

4. The income statement is reconstructed on a cash basis from top to bottom under the direct method of computing the net cash provided by operating activities.

5. In computing the net cash provided by operating activites, depreciation is added to net income un the indirect method.

But it is deducted form operating expense under the direct method.