true or false

1 The Statement of Cash Flows is an optional disclosure for a set of financial statements. 2 The first step in preparing the Statement of Cash Flows is to determine the change in the long-term assets. 3 A statement of cash flows prepared by the indirect method will disclose the cash flows from specific operating activities, such as cash received from customers. 4 Stock investments of 508 or more in an investee should be treated using the Equity method by the investor. 5. A corporation may NOT legally invest in the bonds of another corporation. SEE PROBLEMS BELOW