AP-1B LO 3 Indicate the section of the statement of cash flows where each item would be located (operating, investing or financing activities) using the indirect method. Also indicate whether the item would increase or decrease cash using the indirect method. Item Section Effect on Cash Decrease Investing Loss on sale of equipment Decrease in accounts payable Increase in food inventory Depreciation expense Gain on sale of investments Dividends paid Issuance of shares in the company Net income Decrease in notes payable Sale of equipment Decrease in accounts receivable Operating Increase Operating Increase