Acc 206 Critical Thinking

a. __(I)______ Received $80,000 from the sale of land. b. ___(O)_____ Received $3,200 from cash sales. c. __(O)______ Paid a $5,000 dividend. d. ___(O)_____ Purchased $8,800 of merchandise for cash. e. ___(F)_____ Received $100,000 from the issuance of common stock. f. __(O)______ Paid $1,200 of interest on a note payable. g. __(I)______ Acquired a new laser printer by paying $650. h. ___(N)_____ Acquired a $400,000 building by signing a $400,000 mortgage note.a. Both the direct and indirect methods will produce the same cash flow from operating activities. b. Depreciation expense is added back to net income when the indirect method is used. c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. e. The dollar change in the Merchandise Inventory account appears on the statement of cash flows only when the direct method of statement preparation is used. False - Cash flow from financing activities will be reported same under both methodsFalse - Cash paid to suppliers is normally disclosed