Reference no: EM132611987

Problem 1: Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

a. an increase in inventory

b. preferred dividends declared and paid

c. a decrease in accounts payable

d. a decrease in accounts receivable

Problem 2: On the statement of cash flows, the Cash flows from investing activities section would include:

Group of answer choices

a. payments for dividends.

b. payments for retirement of bonds payable.

c. receipts from the sale of investments.

d. receipts from the issuance of capital stock.