Current Attempt in Progress For each of the following items, indicate how the item should be reported in the statement of cash flows, using the direct method, Decrease in accounts payable during a period. Declaration and payment of a cash dividend. Decrease in accounts receivable during a period. Depreciation expense. Conversion of bonds payable into common stock. Decrease in merchandise inventory during a period. Sale of equipment for cash at book value. Issuance of preferred stock for cash. Purchase of land for cash. Loss on sale of a plant asset. ollowing items, indicate how the item should be reported in the statement of cash flows, using the direct method