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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:

____ 1. Depreciation expense

____ 2. Proceeds from sale of land at a gain

____ 3. Decrease in accounts payable

____ 4. Conversion of bonds to common stock

____ 5. Payment of dividends, declared last fiscal year

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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