The direct method for preparing and reporting the statement of cash flows reports net income and then adjusts it for items necessary to calculate net cash provided or used by operating activities. True False Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks. True False Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities. True False Equipment costing $200,000 with accumulated depreciation of $80,000 is sold at a loss of $11,000 This implies that $131,000 cash was received from the sale. True False Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method? Credit sales. Cash collections from customers. Depreciation expense. Cash received from the sale of a building. Cash received from the sale of treasury stock. In preparing a company's statement of cash flows for the most recent year on the indirect method, the following information is available