Consider the following items:

$$

$($a$)$ Decrease in accounts receivable

$($b$)$ Issuance of common stock

$($c$)$ Increase in interest receivable

$($d$)$ Purchase of land

$($e$)$ Decrease in accounts payable

$($f$)$ Gain on the sale of equipment

$($g$)$ Depreciation expense

$($h$)$ Payment of dividends

$($i$)$ Decrease in utilities payable

$($j$)$ Increase in inventory

$$

How many of these items would be subtracted from net income when using the indirect method to prepare the operating activities section of the statement of cash flows?

Multiple Choice

$4$

$2$

$5$

$1$

Which of the following is not correct about the statement of cash flows?

Multiple Choice

The sale of land in exchange for cash creates a cash inflow from operating activities.

Paying dividends to investors creates a cash outflow from financing activities.

A purchase of equipment creates a cash outflow from investing activities.

Cash dividends received on stock investments creates a cash inflow from operating activities.