Question 1.1.For each of the following items, indicate by using the appropriate code number, how the item should be reported in the statement of cash flows, using the indirect method. (Points : 10)

Potential Matches:

1 :Purchase of a building for cash.

2 :Decrease in accounts payable during a period.

3 :Proceeds from sale of equipment at book value.

4 :Issuance of common stock for cash.

5 :Declaration and payment of a cash dividend.

6 :Acquisition of land in exchange for common stock.

7 :Added to net income.

Answer

:Loss on sale of land

:Deducted from net income

:Cash outflowinvesting activity

:Cash inflowinvesting activity

:Cash outflowfinancing activity

:Cash inflowfinancing activity

:

Significant noncash investing and financing activity