Exercise 12-1 Indirect: Cash flow classification LO C1 The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s). (More than one column may be used.) Statement of Cash Flows Noncash Investing & Not Reported on Statement Operating Activities Investing Activities Financing Activities Financing Activities or in Notes a. Declared and paid a cash dividend b. Recorded depreciation expense c. Paid cash to settle long-term note payable d. Prepaid expenses increased in the year o Accounts receivable decreased in the year 1. Purchased land by issuing common stock g. Inventory increased in the year h. Sold equipment for cash, yielding a loss 1. Accounts payable decreased in the year Income taxes payable increased in the year Exercise 12-1 Indirect: Cash flow classification LO C1 The followina transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s) (More than one column may be used.) Answer is not complete. Statement of Cash Flows Noncash Investing Not Reported on Statement or in Notes Operating Activities Investing Activities Financing Activities Financing Activities Declared and paid a cash dividend Recorded depreciation expense Paid cash to settle long-term noto payable Prepaid expenses increased in the year Accounts receivable decreased in the X Purchased land by issuing common stock Inventory increased in the year Sold equipment for cash, yielding a loss Accounts payable decreased in the year Income taxes payable increased in the