Consider the following statements regarding the preparation of the Cash Flow Statement:
1. The indirect method of preparing the cash flow statement starts with net income and adjusts for changes in working capital.
2. Cash flows from investing activities include cash receipts from the sale of goods and services.
3. Cash flows from financing activities include cash payments for the purchase of fixed assets.
Which of the above statements is/are correct?
1
1 only
2
1 and 2 only
3
1 and 3 only
4
2 and 3 only
5
All of the Above