Business, 28.08.2020 14:01 Cate9216

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.

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