Question

Check my work Exercise 12-1 Indirect: Cash flow classification LO C1 points The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate columns) (More than one column may be used.) Statement of Cash Flows Operating Activities Investing Activities Noncash Investing & Financing Activities Not Reported on Statement or In Notes Financing Activities a Declared and paid a cash dividend Recorded depreciation expense cPaid cash to settle long term note payable Prepaid expenses increased in the year Accounts receivable decreased in the year Purchased land by issuing common stock 9. Inventory increased in the year Sold equipment for cash, yleling a los Accounts payable decreased in the year Income taxes payable increased in the year

Answer 1

NOTE :- As per HOMEWORKLIB RULES, as there are multiple questions, I have answered the first question here, Thanks.

Ans. :- 1

		Statement of cash flows			Non cash investing and financing activities	Not reported on statement or in notes
		Operating	Investing	Financing
		Activities	Activities	Activities
a	Declared and paid a cash dividend			X
b	Recorded depreciation expense	X
c	Paid cash to settle long term notes payable			X
d	Prepaid expenses increased in the year	X
e	Accounts receivables decreased in the year	X
f	Purchased land by issuing common stock				X
g	Inventory increased in the year	X
h	Sold equipment for cash, yielding a loss		X
i	Accounts payable decreased in the year	X
j	Income taxes payable increased in the year	X
NOTE:-	1. Depreciation is a non cash expense, but in indirect method of cash flow, it is added back to the Income from operations for calculating Cash flow of operating activities
	2. Loss on sale of equipment would also be added back to net income for calculating Cash flow of operating activities