1. Identify each of the following transactions as one of the following: o ? Operating activity (O) o ? Investing activity (I) o ? Financing activity (F) o ? Noncash investing and financing activity (NIF) For each cash flow, indicate whether the item increases (+) or decreases (?) cash. The indirect method is used to report cash flows from operating activities. ? _____ a. Cash sale of land. ? _____ b. Issuance of long-term note payable in exchange for cash. ? _____ c. Depreciation of equipment. ? _____ d. Purchase of treasury stock. ? _____ e. Issuance of common stock for cash. ? _____ f. Increase in accounts payable. ? _____ g. Net income. ? _____ h. Payment of cash dividend. ? _____ i. Decrease in accrued liabilities. ? _____ j. Loss on sale of land. ? _____ k. Acquisition of building by issuance of notes payable. ? _____ l. Payment of long-term debt. ? _____ m. Acquisition of building by issuance of common stock. ? _____ n. Decrease in accounts receivable. ? _____ o. Decrease in inventory. ? _____ p. Increase in prepaid expenses.

E 13-14 (5-10 min.) a. f. k. p. b. g. l. c. h. m. d. i. n. e. j. o