Question

Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows.
Number your answer [sheet][form] from 1 to 5 and write the appropriate code next to each number.
No other form of answer will be accepted.

Code

Cash Flows From Operating Activities

		Add to Net Income	OP-A
		Deduct from Net Income	OP-D

	Cash Flows From Investing Activities	IN
	Cash Flows From Financing Activities	FN

	1.		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.

Answer 1

1	Common stock is issued for cash at an amount above par value.	FN
2	Merchandise inventory increased during the period.	OP-D
3	Depreciation expense recorded for the period.	OP-A
4	Building was purchased for cash.	IN
5	Bonds payable were acquired and retired at their carrying value.	FN