Classifying items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (b) Subtract Subtract X Subtract X Add Add Subtract Subtract Add Subtract (a) 1. Payments of short-term debt. Financing 2. Repurchases of common stock. Financing 3. Purchases of property and equipment Financing 4. Sale of investments classified as long term. Financing 5. Proceeds from the issuance of common stock Financing 6. Increase in prepaid expenses and other current assets. Operating 7. Acquisition for cash of a competitor. Investing 8. Increase in current income tax payable. Operating 9. Decrease in accounts payable. Operating 10. Dividends paid to stockholders. Financing 11. Depreciation and amortization. Operating 12. Payment of current maturities of long-term debt. Operating 13. Increase in income tax receivable Operating 14. Decrease in inventories. Operating 15. Decrease in accounts receivable. Operating 16. Decrease in deferred revenue. Operating 17. Loss on disposal of fixed assets. Operating 18. Increase in accrued salaries and payroll taxes. Operating 19. Loss on impairment of assets. Operating 20. Acquisition of intangibles assets. Operating e Subtract Add + X Add Add X Add Add Add Add Add Add X Add