Zoom Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: Additional information provided: Equipment costing $52,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $14,000. Depreciation expense of $12,000 was recorded during the year. Based on the info presented which of the following is the correct net amount of Cash from investing activities? A) $30,000 negative B) $60,000 positive C) $52,000 negative D) $38,000 negative (2 Marks)

10. In creating a statement of cash flows using the indirect method, which of the following statements is TRUE about depreciation expense? A) It is added back as an adjustment to net income in the operating activities section. B) It is shown as a negative cash flow in the investing activities section. C) It is added back to purchases of plant assets under investing activities. D) It is shown as a negative cash flow under operating activities. (2 Marks) 2014 2013 Increase/decrease Cash $ 21,000 $ 18,000 $ 3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000 Total assets $225,000 $168,000 $57,000