33. Consider the following items: () Decrease in inventory (g) Loss on the sale of equipment (h) Payment of dividends (0) Purchase of land (a) Increase in accounts receivable (b) Issuance of common stock (c) Issuance of notes payable (d) Depreciation expense (e) Increase in accounts payable 0) Decrease in salaries payable How many of these items would be added to net income when using the indirect method to prepare the operating section of the statement of cash flows? a. 4 b, 3 On February 1, 2018, a company lends cash and accepts a $2.000 note receivable that offers 10% interest and is receivable in six months. What would the company record on August 1, 2018, when it receives the correct amount from the borrower? a. Cash 34. , 2,200 2,200 Notes Receivable 2,100 b. Cash 100 Interest Revenue Notes Receivable 2,000 2,100 200 2,100 c. Cash Notes Receivable 2,200 d. Cash Interest Revenue 2,000 Notes Receivable companies choose to report inventory using the FIFO method because it results in: 5. Many Lower cost of implementing. Higher revenues reported. a. Higher total assets reported. b. Matches the actual inventory sold. c. Fewer taxes paid. d. e. Which profitability ratio measures earnings on each dollar of stockholders' equity? a. Profit margin b. Return on equity Gross profit ratio Return on assets c. d. Dividends received from an investment is classified as a(an) cash flow, and paying dividends stock issued is classified as a(an) cash flow on the Statement of Cash Flows. Financing. b. None of the answers is correct. Financing: Operating Investing: Financing. Operating; Operating c. d