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Assuming a statement of cash flows is prepared using the indirect approach, indicate the reporting of the transactions and events listed below by major
Assuming a statement of cash flows is prepared using the indirect approach, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code word to indicate the appropriate category under which the item would appear on the statement of cash flows. Cash Flows From Operating Activities Add to Net Income Code Add Deduct Cash Flows From Investing Activities Investing Activities Deduct from Net Income Cash Flows From Financing Activities Financing Activities 1. Common stock is issued for cash at an amount above par value. Category 2 Inventory increased during the period. 3. Depreciation expense recorded for the period. 4. Building was purchased for cash. 5. Bonds payable that were acquired at par are retired at their carrying value. : 6. Accounts payable decreased during the period.
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