When preparing a statement of cash flows using the indirect method, which of the following is correct? Multiple Choice Proceeds from the sale of equipment should be added to net income in the operating activities section. The issuance of a stock dividend should be a use of cash in the financing activities section. A loss on the sale of land should be added to net income in the operating activities section. The declaration of a cash dividend should be a use of cash in the financing activities section. The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?