Question: 5. When preparing a statement of cash flows using the indirect method, a gain on sale of land is deducted from net income to arrive

5. When preparing a statement of cash flows using the indirect method, a gain on sale of land is deducted from net income to arrive at net cash flows from operating activities. 6. When preparing a statement of cash flows using the indirect method, an increase in accounts receivable is added to net income. 7. When preparing a statement of cash flows using the indirect method, an increase in accounts payable is added to net income. 8. A decrease in the balance of merchandise inventory is subtracted from net income when calculating net cash flows from operating activities using the indirect method

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