Novak SpA is preparing its 2019 statement of cash flows, using the indirect method. The following is
Question:
Code Letter Effect
A........................Added to net income in the operating section
D........................Deducted from net income in the operating section
R-I......................Cash receipt in investing section
P-I......................Cash payment in investing section
R-F.....................Cash receipt in financing section
P-F.....................Cash payment in financing section
N.......................Non-cash investing and/or financing activity in notes
Items
______ a. Purchase of land and building.
______ b. Decrease in accounts receivable.
______ c. Issuance of shares.
______ d. Depreciation expense.
______ e. Sale of land at book value.
______ f. Sale of land at a gain.
______ g. Payment of dividends.
______ h. Increase in accounts receivable.
______ i. Purchase of an equity investment.
______ j. Increase in accounts payable.
______ k. Decrease in accounts payable.
______ l. Loan from bank by signing note.
______ m. Purchase of equipment using a note.
______ n. Increase in inventory.
______ o. Issuance of bonds.
______ p. Retirement of bonds payable.
______ q. Sale of equipment at a loss.
______ r. Purchase of treasury shares.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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