Activity#12 - Protected View - Saved to this PC- Layout References Mailings Review View Help from the Internet can contain viruses. Unless you need to edit, ut's safe to stay in Protected View Frable Editing Problem 1 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 indirect method. A Added to net income B. Deducted from net income C Cash outflow investing activity D. Cash inflow investing activity E Cash outflow financing activity F. Cash inflow-financing activity G. Significant noncash investing and financing activity 1. Decrease in accounts payable during a period 2. Declaration and payment of a cash dividend. Loss on disposal of land. Decrease in accounts receivable during a period. 5. Redemption of bonds for cash 6. Proceeds from the sale of equipment at book value 7. Issuance of common stock for cash. 8. Purchase of a building for cash. 9. Acquisition of land in exchange for common stock. 10. Increase in inventory during a period. eferences Mailings Review View Help et can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Problem 2 Use the following information to perform the calculations below (using the indirect method). Clearly label the amount of each answer as positive or negative and show all your calculations. Net income Depreciation expense Beginning accounts receivable Ending accounts receivable Beginning inventory Ending inventory Beginning prepaid insurance Ending prepaid insurance $401,000 97,000 420,000 439,000 516,000 550,000 42,000 48,000 Beginning accounts payable Ending accounts payable Purchase of long-term assets Issuance of long-term debt Issuance of stock for cash Issuance of stock for long-term assets Purchase of treasury stock Sale of long-term investment at cost $119,000 146,000 612,000 220,000 180,000 110,000 64,000 56,000 a. Calculate the amount of cash flows from operating activities. b. Calculate the amount of cash flows from investing activities. C. Calculate the amount of cash flows from financing activities. d. Calculate the net change in cash