The direct method for computing and reporting net cash flows from operating activities involves adjusting net income to obtain net cash provided or used by operating activities. True or False True False The cash flow on total assets ratio is affected by accounting recognition and measurement. True or False True False Colby Company reports net income of $50,000. For the year, depreciation expense is $15,000 and the company reports a gain of $5,000 from sale of machinery. It also had a $3,000 loss from retirement of notes. As a result, cash flows provided by operating activities for the year using the indirect method is $63,000. True or False True False The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income. True or False True False A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows. True or False True False