Question
1. A statement of cash flows contains the following sections: a. net cash flow from operating activities b. cash flows from investing activities c. cash
1. A statement of cash flows contains the following sections:
a. net cash flow from operating activities
b. cash flows from investing activities
c. cash flows from financing activities
d. investing and financing activities not affecting cash
A list of items that appear on the statement is provided below:
____ 6. Proceeds from issuance of short-term note payable, not relating to operating activities
____ 7. Loss on cash sale of equipment
____ 8. Payment for purchase of a building
____ 9. Bond premium amortization using the effective interest method
____ 10. Issuance of common stock to convert bonds payable
Required:
In the space provided, using the letters (a-d), indicate in which section(s) of the statement of cash flows the preceding items would most likely be classified (indirect method for operating activities). After each item affecting cash, indicate with a plus sign (+) or a minus sign () whether the item would be reported as an increase (inflow) or a decrease (outflow).
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