When a company uses the direct method to determine the cash flows from operating activities, cash flows from operating activities will:

be identical to the amount reported using the indirect method.

be larger if there is a net cash outflow and smaller if there is a net cash inflow compared to the amount reported using the indirect method.

be larger if there is a net cash inflow and smaller if there is a net cash outflow compared to the amount reported using the indirect method.

always be larger than the amount reported using the indirect method.

Using the indirect method, which of the following would be added to net income?

An increase in Equipment

A decrease in Supplies

An increase in Prepaid Insurance

A decrease in Salaries and Wages Payable

Which of the following is NOT a financing activity.

All of these are financing activities.

Purchasing your own company's stock.

Issuing bonds for cash.

Repaying the principal of a loan