for all questions assume that the indirect method is used. there are four parts to the Statement of Cash Flows (or Cash Flow Statement): Operating Activities Investing Activities Financing Activities Supplemental Disclosures

For each of the following items, indicate which part will be affected. 1. Depreciation Expense. 2. Proceeds from the sale of equipment used in the business. 3. The Loss on the Sale of Equipment in Question #2. 4. Declaration and payment of dividends on company's stock. 5. Gain on the Sale of Automobile formerly used in the business. 6. The proceeds from the sale of the automobile in Item #5. 7. An increase in the balance in a retailer's Merchandise Inventory. 8. An increase in the balance in Accounts Payable. 9. Retirement of long-term Bonds Payable. 10. Purchase of Treasury Stock (company's own stock).