The following information is available from the current period financial statements:

7. The following information is available from the current period financial statements:

Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $175,000 28,000 16,000 21,000

The net cash flow from operating activities using the indirect method is

a. $166,000

b. $184,000

c. $110,000

d. $240,000

8. A building with a book value of $54,000 is sold for $63,000 cash Using the indirect method, this transaction should be shown on the statement of cash flows as follows:

a. an increase of $54,000 from investing activities

b. an increase of $63,000 from investing activities and a deduction from net income of $9,000

c. an increase of $9,000 from investing activities

d. an increase of $54,000 from investing activities and an addition to net income of $9,000 --

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ekkarill92 answered 2 years ago

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