5. For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the direct method. A. Added in determining cash receipts from customers B. Deducted in determining cash receipts from customers C. Added in determining cash payments to suppliers D. Deducted in determining cash payments to suppliers E. Cash outflow-investing activity F. Cash inflow-investing activity G. Cash outflow-financing activity H. Cash inflow-financing activity I. Significant noncash investing and financing activity J. Is not shown Example Decrease in accounts payable during a period: match C. The answer is C. 1. cash received from dividends. (1) 2. Declaration and payment of a cash dividend. 3. Decrease in accounts receivable during a period. 4. Depreciation expense. 5. Issuance of ordinary share for land. 6. Decrease in inventory during a period. 7. Sale of equipment for cash at book value. 8. Issuance of preference shares for cash. 9. Purchase of land for cash. (9) 10. Loss on disposal of a plant asset