Write true if the statement is correct If you believe otherwise write false and state you reason briefly 1 Conversion of preference shares to ordinary shares is ciassfed as iranong actvty 2 Enutes are encouraged to present cash flows from operating actvities using the indirect 3 To compute for cash collections from customers sales or account are added to the accounts method receivable end To convert the accrual net income to cash bass dacrease in current assets except cash and cash equivalents are added to the adjusted net income Amortzation of discount on bonds payable is deducted from the net income under the indirect method Increase in trade accounts payable is added to the adjusted net income under the indirect method 7 The cost of sales is added back to the net income in computing cash flows from operating 8 The amount of income tax that appears on the ncome statement represents the amount of 9 Gan on sale of investment securtes or gain on sale of property plant and equipment are activities income tax paid deducted from operating activities snce these accounts were added in the determination of net income but cash and cash equivalents were not involved 10 Depreciation and doubtful accounts are added to operating actvities since these accounts were deducted in determining net income for the penod out they dia not involve cash and cash equivalents