26. Cash flows provided (used) by operating activities, prepared using the indirect method, would include (a) receipts from the sale of investments. (b) net income. (c) payments for dividends. (d) receipts from the issue of preferred shares. 27. If accounts receivable bave increased during a period, (a) revenues on an accrual basis are less than revenues on a cash basis. (b) revenues on an accrual basis are greater than revenues on a cash basis. (c) revenues on an accrual basis are the same as revenues on a cash basis. (d) expenses on an accrual basis are greater than expenses on a cash basis. 28. Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Net income reported on the statement of income for the year was $120,000. Ignoring the effect of any other adjustments, the cash flow provided (used) by operating activities, prepared using the indirect method, is (a) $120,000. (b) $125,000 (c) $155,000 (d) $115,000. 29. If accounts payable have increased during a period, (a) revenues on an accrual basis are less than revenues on a cash basis. (b) expenses on an accrual basis are less than expenses on a cash basis. (c) expenses on an accrual basis are greater than expenses on a cash basis. (d) expenses on an accrual basis are the same as expenses on a cash basis. 30. In calculating cash flows provided (used) by operating activities using the indirect method, a gain on the sale of equipment is (a) added to net income. (b) deducted from net income. (C) ignored because it does not affect cash. (d) not reported on a statement of cash flows