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For each item listed, indicate which section of the cash flow statement it would be classified under (O = Operating, I = Investing, F =

  1. For each item listed, indicate which section of the cash flow statement it would be classified under (O = Operating, I = Investing, F = Financing, NC = Investing or Financing Activity not affecting cash) and indicate whether the item would be shown as an increase (+) or decrease (-). If the item would not be reported in the statement (or accompanying schedule), indicate this with an X. (Hint: you will find some of these discussed in Chapter 13, but not all. For those not directly referenced in Chapter 13, you may need to refer to previous chapters, especially as it relates to showing impact on the accounting equation. Also, several of these may have an effect on more than one section of the cash flow statement. Assume the Indirect Approach for the Operating Section is used.
    1. Increase in deferred income taxes payable.
    2. Amortization of premium on bonds payable, semiannual payment date.
    3. Purchase of an investment in 60-day Treasury Securities.
    4. Adjusting entry for inventory shrinkage.
    5. Depletion expense on natural resource.
    6. Adjusting entry for bad debt expense (assume allowance method; aging approach).
    7. Monthly payment of interest and principal on installment note payable.
    8. Loss from Impairment of Goodwill.
    9. Increase in Unfunded Pension Liability.
    10. Loss on bond redemption.

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