1. Assuming a company uses the indirect method to report cash flows from operating activities, indicate where each of the following items would appear on its statement of cash flows. Also indicate whether the cash flow would appear as a positive or negative amount.

	Operating Activities	Investing Activities	Financing Activities		Positive Amount	Negative Amount
Sold equipment for cash
Accounts payable decreased
Recorded depreciation expense
Loaned cash to another company
Paid interest on a note payable
Equipment sale resulted in a loss
Accounts receivable decreased
Issued common stock for cash
Income taxes payable increased
Paid cash dividends
Merchandise inventory increased