Classifying items on the indirect statement of cash flowsThe cash flow statement categoriz...

Classifying items on the indirect statement of cash flows

The cash flow statement categorizes like transactions for optimal reporting.

Requirement

1. Identify each of the following transactions as one of the following:

• Operating activity (O)

• Investing activity (I)

• Financing activity (F)

• Noncash investing and financing activity (NIF)

• Transaction that is not reported on the statement of cash flows (N)

For each cash flow, indicate whether the item increases (+) or decreases (–) cash. The indirect method is used to report cash flows from operating activities.