Billy Company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

Which of the following statements is true?

A) The indirect method and the direct method will produce a different amount of net cash flow from investing activities. B) The indirect method starts with net income and adjusts it to cash provided by (used for) operating activities. C) The direct and indirect methods include different types of cash flows in the investing activities section. D) The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities.

In a(n) ________ inventory system, an order is placed for a variable amount after a fixed passage of time

A) periodic B) continuous C) optimal D) economic