Note that X in the following statement of cash flows identifies a dollar amount and the letters (A) through (F) identify specific items, which appear in the major sections of the statement of cash flows prepared using the indirect method.
	Cash flows from operating activities
	Net income			X
	Add (deduct) non-cash expenses:
		Add		+X	A
		Deduct		X	B
	Cash provided by operating activities		X
	Cash flows from investing activities
		Inflows		+X	C
		Outflows		X	D
	Cash provided by (used in) investing activities		X
	Cash flows from financing activities
		Inflows		+X	E
		Outflows		X	F
	Cash provided by (used in) by financing activities		X
	Net increase (decrease) in cash		X
Instructions
For each of the following items, indicate by letter in the blank spaces below, the section or sections where the effect would be reported assuming the company follows ASPE. Use the code (A through F) from above. If the item is not required to be reported on the statement of cash flows, write the word "none" in the blank. Assume that generally accepted accounting principles have been followed in determining net income and that there are no temporary investments which are considered cash equivalents.
LETTER
	1	Issued preferred shares in exchange for equipment.
	2	Accounts receivable increased by $60,000.
	3	Accrued estimated income taxes for the year.
	4	Amortization of premium on bonds payable.
	5	Purchase of long-term investment.
	6	The book value of FV-NI investments was reduced to fair value.
	7	Declaration of stock dividends.
	8	Loss on impairment of accounts receivable recorded (company uses the allowance method).
	9	Gain on disposal of old machinery.
	10	Declaration and payment of cash dividends.
	11	FV-NI investments sold at a loss.