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Chapter 12 O = Operating activity 1 = Investing activity F = Financing activity E12-1 Modified Requirement: The following items are commonly found in the
Chapter 12 O = Operating activity 1 = Investing activity F = Financing activity E12-1 Modified Requirement: The following items are commonly found in the cash flow statements of publicly traded entities. For each of the items, identify the activities section to which it! it belongs Operating. O. Investing. 1. Financing, F), and direction {positive or negative) required for the adjustment within the statement of cash flow. For example, a negative adjustment to be recorded in the financing activities section should be reflectod as "F New long-term debt agreement entered into, for cash. Depreciation expense. 3 Purchase of equipment with cash. 4 Decrease in notes pavable. (Amount is owed to financial institutions.) 5 Decrease in accounts receivable. 6 Cash received from disposal of property. 7 Reductions in long-term debt. 8 Issuance of stock in exchange for cash. 9 Increase in inventory. 10 Net income
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