Classlfylng items on the indirect statement of cash flows [10 mln]

destiny corporation is preparing its statement of cash flows by the indirect method. destiny has the following items for
you to consider in preparing the statement:

. increase in accounts payable

. payment of dividends

. decrease in accrued liabilities

. issuance of common stock

. gain on sale of building

. loss on sale of land

. depreciation expense

. increase in inventory

. decrease in accounts receivable

. purchase of equipment

requirement

1. identify each item as am)

0 operating activity—addition to net income (0+), or subtraction from net income (0-)
0 investing activity—addition to cash flow (i+), or subtraction from cash flow (i-)

0 financing activity—addition to cash flow (f+). or subtraction from cash flow (f-)

0 activity that is not used to prepare the indirect cash flow statement (n)