Reference no: EM132807012

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

Net income $150,000

Depreciation expense 28,000

Increase in accounts receivable 16,000

Decrease in accounts payable 21,000

Problem 1: The net cash flow from operating activities using the indirect method is

a. $117,000

b. $141,000

c. $173,000

d. $215,000

Problem 2: A building with a book value of $ 46,000 sold for $51,000, cash using the indirect method, this transaction should show on the statement of cash flows as follows:

a. an increase of $46,000 from investing activities

b. an increase of $51,000 from investing activities and a deduction from net income of $5,000

c. an increase of $51,000 from investing activities

d. an increase of $46,000 from investing activities and an addition to net income of $5,000