When a statement of cash flows is prepared using the indirect method:

Select one:

a$.$ Net income is the starting point in determining cash flows from operations

b$.$ Cash paid for dividends is not included

c$.$ Cash received for issuing common stock would be added in the Investments section

d$.$ Depreciation is subtracted in the Operations section

The statement of cash flows $($indirect method$)$ would disclose the purchase of Treasury Stock:

Select one:

a$.$ In the financing activities section

b$.$ In the investing activities section

c$.$ In the operating activities section

d$.$ In the production section

If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to arrive at net cash flows from operating activities?

a$.$ Decrease in accounts payable

b$.$ Increase in inventory

c$.$ Increase in prepaid expenses

d$.$ Decrease in accounts receivable

Assuming that the indirect method is used, which of the following would be deducted from net income to arrive at net cash flows from operating activities?

a$.$ Cash received from fixed asset sale

b$.$ Depreciation Expense

c$.$ Gain on Disposal of Equipment

d$.$ Increase in Unearned Revenue

e$.$ Cash dividends paid