Which disclosures would appear on statement of cash flows

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Question 1: Lincoln Restaurants reported net income in 2016 of $46.70 million and depreciation expense of $49.60 million. It also reported additions to property and equipment of $163.70 million. Which of the following disclosures would appear on the 2016 statement of cash flows?

A. Depreciation of $49.60 million would be deducted from net income under operating activities and the $163.70 million would be added under investing activities.

B. Depreciation of $49.60 million would be added to net income under operating activities and the $163.70 million would be added under investing activities.

C. Depreciation of $49.60 million would be deducted from net income under operating activities and the $163.70 million would be deducted under investing activities.

D. Depreciation of $49.60 million would be added to net income under operating activities and the $163.70 million would be deducted under investing activities.

Reference no: EM132492398

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