2. When preparing its statement of cash flows, Simon Says Games, Inc., reported net income of $86,000, a decrease in accounts receivable of $24,200, an increase in mortgage note payable of $430,000, and an increase in depreciation expense of $25,300. The Financing Activities section of the statement of cash flows would show net cash flows of

a.$(344,000).

b.$(430,000).

c.$430,000.

d.$(342,900).

3. Income tax was $207,000 for the year. Income tax payable was $30,100 and $40,300 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method total

a.$207,000.

b.$196,800.

c.$237,100.

d.$217,200.

5. A spreadsheet __________ used in preparing the statement of cash flows.

a.cannot be

b.is required by the FASB to be

c.may be

d.must be