Which would go into the operating activities section of a statement of cash flows using the direct method?

__Depreciation expense

__Cash paid for inventory

__Selling of plant, property and equipment

__All of the above

Operating expenses other than depreciation expense for the year were $335,000. Prepaid expenses increased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

__$335,000.

__$342,000.

__$328,000.

__$7,000.

Operating expenses other than depreciation expense for the year were $400,000. Accrued expenses payable decreased by $35,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

		__$400,000.
		__$435,000.
		__$365,000.
		__$35,000.

The method of reporting cash flows from operating activities under which revenues and expenses on the income statement are adjusted to reflect the amount of cash received or expended for each item is the:

		direct method.
		indirect method.
		combination method.
		adjustment method.