ending statement of cash flows explains the difference between the beginning and balances and cash equivalents. (Points: 1) D True D False 2. A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows. (Points: 1) D True D False 3. Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows. (Points: 1) D True D False 4. One of the necessary steps in preparing the statement of cash flows is computing the net increase or net decrease in cash. (Points: 1) D True D False 6. The indirect method reports individual operating cash outflows and cash inflows by ctivity. (Points: 1) O True D False When preparing the operating section of the statement of cash flows using the indirect ethod, noncash operating expenses are added back to net income. (Points: 1) O True False Page 1