Business, 06.05.2020 03:41 alyssavwil7499
Assuming a statement of cash flows is prepared using the indirect method, indicate the reporting of the transactions and events listed below by major categories on the statement. Using the following terms to indicate the appropriate category under which the item would appear on the statement of cash flows. Code Add to Net Income ADeduct from Net Income BCash Flows From Investing Activities C Cash Flows From Investing Activities DCash Flows From Financing Activities ECash Flows From Financing Activities F1. Common stock is issued for cash at an amount above par value.
2. Merchandise inventory increased during the period.
3. Depreciation expense recorded for the period.
4. Building was purchased for cash.
5. Bonds payable were acquired and retired at their carrying value.
6. Accounts payable decreased during the period.
7. Prepaid expenses decreased during the period.
8. Treasury stock was acquired for cash.
9. Land is sold for cash at an amount equal to book value.
10. Patent amortization expense recorded for a period.
Answers: 3
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