Reference no: EM132950011

Problem 1: Which of the following would be subtracted from net income when using the indirect method to derive net cash flows from operating activities?

a. Depreciation expense

b. Decrease in accounts receivable

c. Decrease in accounts payable

d. Loss on sale of investments

Problem 2: An item/s not part of the cash flows from financing activities in (are)

a. Proceeds from issuing bonds, mortgages and notes

b. Proceeds from other short-term or long-term borrowings

c. All of the given choices

d. Proceeds from sale of the company's ordinary shares

e. Proceeds from sale of inventories

Problem 3:  In the statement of cash flows, interest received, and dividend received may be reclassified alternatively as cash flow from

a. Operating activities

b. Financing activities

c. No alternative presentation

d. Investing activities