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An analysis of comparative balance sheets, the current year's income statement, and the general ledger account uncovered the following items. Assume all items involve cash
An analysis of comparative balance sheets, the current year's income statement, and the general ledger account uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate where each item should be presented in the statement of cash flows (indirect method) using these four classifications: operating activity (that is, the item would be listed among the adjustments to net income to dete provided by operating activities under the indirect method), investing activity, financing activity, or significant no financing activity. (a) Exchange of land for patent. Noncash Investing and Financing Activity (b) Sale of building at book value. Investing Activity (c) Payment of dividends. Financing Activity (d) Depreciation. Operating Activity (e) Conversion of bonds into common stock. Investing Activity (f) Issuance of capital stock. Investing Activity (g) Amortization of patent. Operating Activity (h) Issuance of bonds for land. Noncash Investing and Financing Activity (i) Purchase of land. Investing Activity (i) Loss on disposal of plant assets. Operating Activity (k) Retirement of bonds. Noncash Investing and Financing Activity
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