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

____ 6. Proceeds from issuance of short-term note payable, not relating to operating activities

____ 7. Loss on cash sale of equipment

____ 8. Payment for purchase of a building

____ 9. Bond premium amortization using the effective interest method

____ 10. Issuance of common stock to convert bonds payable

Required:

In the space provided, using the letters (a-d), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified. 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).