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QUESTION 13 Entity L reported net income of $150,000 for the current year and uses the indirect method to report operating activities cash flow. Accounts Receivable increased by $21,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Accounts Receivable. O Cash Flows From Operating Activities-Add to Net Income O Cash Flows From Operating Activities-Deduct from Net Income O Cash Flows From Investing Activities O Cash Flows From Financing Activities O Non-cash QUESTION 14 Preferred stock O has a preference as to dividends O has a preference as to assets in the event of a liquidation O usually does not have voting rights O all of the above QUESTION 15 On January 1, 2023, Entity J issued $2,000,000 of 4% bonds with a five-year term. Interest is payable annually on January 1. The market interest rate was 6%. The issue price was $1,831,509. Entity J uses the effective interest method for amortization of bond discount or premium. What is the interest expense for the first year? Round to the nearest dollar if necessary. O 120.000 O $29,891 O $109,891 $80,000 QUESTION 16 Entity L reported net income of $150,000 for the current year and uses the indirect method to report operating activities cash flow. Merchandise Inventory decreased by $20,000 during the year. Choose the appropriate category on the statement of cash flows to report the decrease in Merchandise Inventory. O Cash Flows From Operating Activities-Add to Net Income O Cash Flows From Operating Activities-Deduct from Net Income O Cash Flows From Investing Activities Cash Flows From Financing Activities O Non-cash

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