The cash flow statement categorizes like transactions for optimal reporting. Identify each of the following transactions as one of the following: • Operating activity (0) • Investing activity (I)
• Financing activity (F)
• Non-cash investing and financing activity (NIF)
• Transaction that is not reported on the statement of cash flows (N)
For each cash flow, indicate whether the item increases (+) or decreases (-) cash. The indirect method is used to report cash flows from operating activities.
a. Loss on sale of land. i. Cash sale of land.
b. Acquisition of equipment by issuance of note payable.
c. Issuance of long-term note payable to borrow cash.
d. Payment of long-term debt.
e. Depreciation.
f. Acquisition of building by issuance of common stock.
g. Purchase of treasury stock.
h. Increase in Salaries Payable.
i. Issuance of common stock.
j. Decrease in Merchandise Inventory.
k. Increase in Accounts Payable.
l. Increase in Prepaid Expenses.
m. Net income.
n. Decrease in Accrued Liabilities.
o. Payment of cash dividend.

a. Operating activity (0) , decreases (-) and Investing activity (I), increases (+)

b. Non-cash investing and financing activity (NIF)

c. Financing activity (F), increases (+)

d. Financing activity (F), decreases (-)

e. Operating activity (0), increases (+)

f. Non-cash investing and financing activity (NIF)

g. Financing activity (F), decreases (-)

h. Operating activity (0), increases (+)

i. Financing activity (F), increases (+)

j. Operating activity (0), increases (+)

k. Operating activity (0), increases (+)

l. Operating activity (0), decreases (-)

m. Operating activity (0), increases (

n. Operating activity (0), decreases (-)

o. Financing activity (F), decreases (-)

Explanation:

The Indirect method reconciles the Operating profit to Operating Cash Flow by adjusting the Operating Profit with (1) Non Cash Items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.

The Operating Activities - Shows cash flows resulting from ordinary course of trading

The Investing Activities - Shows cash flows resulting from sale or acquisition of items of Property, Plant and Equipment.

The Financing Activities - Shows Cash flows resulting from sources of funding and the repayment of debt capital.

c

explanation:

answer; the correct answer to the above statement is (true);