Which of the following is CORRECT? Balance sheet reports the impact of a firm's activities on cash flows over a given period of time. Income statement provides a snapshot of a firm's financial position over a given period of time. In the statement of cash flows, an increase in accounts payable is added back to net income in the operating activities section. In the statement of cash flows, depreciation is substracted from net income in the operating activities section. Free cash flow (FCF) is defined as follows: FCF = EBIT(1 - T) + Capital expenditures