Question

Exercise 12-1 Indirect: Cash flow classification LO C1 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 column(s). (More than one column may be used.) Statement of Cash Flows Investing&Not Reported g Financing Financing on Statement es Activities Activities or in Notes Operating Investing Financing Activities Activities Activities a. Declared and paid a cash dividend b. Recorded depreciation expense c.Paid cash to settle long-term note payable d.Prepaid expenses increased in the year e. Accounts receivable decreased in the year f. Purchased land by issuing common stock Inventory increased in the y h. Sold equipment for cash, yielding a loss i. Accounts payable decreased in the year j. Income taxes payable increased in the year ear

Answer 1

		Operating	Investing	Financing	Non investing and financing	not reported in statement or in notes
a	Declared and paid cash dividend			X
b	Recorded depreciation Expenses		X
c	Paid cash to settle long term notes payable			X
d	prepaid expenses increased in the year	X
e	accounts receivable decreased in the year	X
f	purchase of land by issuing the stock					X
g	inventory increased in the year	X
h	sold equipment in cash yielding loss		X
i	accounts payable decreased in the year	X
j	income tax payable increased in the year	X

Answer 2