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Which proceeds from issuing equity instruments be classified

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Reference no: EM132769202

Problem 1: In a statement of cash flows, which of the following would increase reported cash flows from operating activities using the direct method ?(Ignore income tax considerations.)

a. gain on sale of equipment                      c. change from straight line to accelerated depreciation
b. dividends received from investments      d. gain on early retirement of bonds

Problem 2: In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

a. lending activities

b. operating activities

c. investing activities

d. financing activities

Reference no: EM132769202

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