1.

For each of the following, identify whether it would be disclosed as an operating, financing , or investing activity on the statement of cash flows under the indirect method.

a. Purchased buildings _________

b. Sold Patents __________

c. Net income _________

d. Issued Common Stock ________

e. Paid cash dividends _________

f. Depreciation expense _________

2.

Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:

a.	Increase in prepaid expenses ________
b.	Amortization of patents ________
c.	Increase in salaries payable __________
d.	Gain on sale of fixed assets __________
e.	Decrease in accounts receivable _________
f.	Increase in notes receivable due in 60 days ________
g.	Amortization of discount on bonds payable _________
h.	Decrease in inventory _________
i.	Depreciation of fixed assets _________
j.	Loss on retirement of long-term debt _________
k.	Decrease in accounts payable __________
l.	Increase in notes payable due in 30 days __________
m.	Increase in income taxes payable ___________