(c) Cash flow per share should not be reported on the
statement of cash flows because it may be misleading and may be
incorrectly used as a measure of profitability. Answers (a)
and (b) are incorrect because, when the indirect method is used,
separate disclosure is required for interest paid (net of amounts
capitalized) and income taxes paid. Answer (d) is incorrect because,
regardless of the method used, dividends paid on preferred
stock are reported as a financing activity.