Question

NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of its association with sports stars such as LeBron James and Serena Williams. Some of the items included in its recent statement of cash flows presented using the indirect method are listed here.

Select whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement.

1) Additions to Long Term Debt

2) Depreciation

3) Additions to property, plant and equipment

4) Increase (decrease) in notes payable. (The amount it owed to financial institutions.)

5) (Increase) decrease in other current assets

6) Cash received from disposal of property, plant and equipment

7) Reductions in long-term debt

8) Issurance of Stock

9) (Increase) decrease in inventory

10) Net income

Answer 1

--F-- 1) Additions to Long Term Debt

--O-- 2) Depreciation

--I-- 3) Additions to property, plant and equipment

--F-- 4) Increase (decrease) in notes payable. (The amount it owed to financial institutions.)

--O-- 5) (Increase) decrease in other current assets

--I-- 6) Cash received from disposal of property, plant and equipment

--F-- 7) Reductions in long-term debt

--F-- 8) Issurance of Stock

--O-- 9) (Increase) decrease in inventory

--O-- 10) Net income