When preparing a statement of cash flows using the indirect method, depreciation would be

		Added to cash flows from operating activities
		Added to cash flows from investing activities
		Subtracted from cash flows from operating activities
		Subtracted from cash flows from investing activities

The Kenton Corp. began business this year. In addition to the $665,000 invested by its shareholders Kenton borrowed $235,000 from the bank. Kenton then purchased a new office building for $350,000. Of this purchase price $125,000 was paid using the cash received from the shareholders and the remaining amount was financed by a trust company. What is the amount of shareholders equity to be reported on the balance sheet

		$665,000
		$775,000
		$315,000
		$540,000

On September 30, 2015, Alcor, Inc. received a bill for $5,000 for running a newspaper ad in September. The bill will be paid in October. Which of the following statements is correct?

		liabilities are increased by $5,000 in October
		assets are decreased by $5,000 in September
		net income is decreased by $5,000 in October
		net income is increased by $5,000 in October