indirect method . working capital method 6- Multiple Choice Question 93
In developing the cash flows from operating activities , most companies in the U . S .
prepare the operating activities section on the accrual basis . use the direct method . use the indirect method . present both the indirect and direct methods in their financial reports . 7- Multiple Choice Question 71
Carrot Company issued common stock for proceeds of $ 381,000 during 2013 . The company paid dividends of $ 90,000 and issued a long-term note payable for $ 95,000 in exchange for equipment during the year . The company also purchased treasury stock that had a cost of $ 18,000 . The financing section of the statement of cash flows will report net cash inflows of
$ 489,000 . $ 183,000 . $ 363,000 . $ 273,000 8-