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Financing activities involve: a. Issuing debt. b. Acquiring investments c. Lending money d. Acquiring fixed assets. Which of the following should be added to net income in calculating cash flows from operating activities using the indirect method: a. An increase in inventory. b. A decrease in accounts receivable. c. Preferred dividends declared and paid. d. A decrease in accounts payable. Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as an expense. On 7. the statement of cash flows, what amount should be reported as an investing activity from the sale of land? a. $18,000. b. $50,000. c. $68,000 d. $118,000. On the statement of cash flows, the cash flows from investing activities 8. section would include: a. Cash receipts from the sale of investments. b. Cash payments for dividends. c. Cash payments for the retirement of bonds payable. d. Cash receipts from the issuance of capital stock. 9.Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows? a. The issuance of long-term debt. b. The acquisition of treasury stock. c. The declaration of stock dividends. d. The appropriation of retained earnings A building with a book value of $45,000 is sold for $50,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as: a. An increase of $45,000 in cash flows from investing activities. b. An increase of $45,000 in cash flows from investing activities and 10 an addition to net income of $5,000. c. An increase of $50,000 in cash flows from investing activities. d. An increase of $50,000 in cash flows from investing activities and a deduction in net income of $5,000

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