Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

Select one:

a. an increase in accounts payable

b. a decrease in accounts payable

c. preferred dividends declared and paid

d. an increase in inventory

During 2019, the board of directors declared cash dividends of $625,000. The comparative balance sheets indicate that dividends payable were $24,000 on January 1, 2019 and were at $17,500 on December 31, 2019. What amount of cash was paid to stockholders during 2019? (Hint: A T-account would probably help you to visualize this)

Select one:

a. $642,500

b. $625,000

c. $649,000

d. $631,500

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

Select one:

a. an increase in accrued liabilities

b. a decrease in accounts payable

c. dividends paid on common stock

d. a gain on the sale of land