Selected changes in various corporate accounts during a fiscal year are described below. By the use of xs, indicate the section of the statement of cash flows (indirect or direct method) in which the change is reported.

Section of Statement of Cash Flows Operating Investing Financing Not Activities Activities Activities Reported 0. Merchandise Inventory-net increase ................. 1. Retained Earningsdebit for stock dividends distributed .... 2. Common Stock-credit for issuance at par for cash 3. Bonds Payable-debit for redemption of bonds 4. Office Supplies-net decrease 5. Accounts Receivable-net decrease .... 6. Retained Earningsdebit for net loss 7. Accounts Payable-net increase ... 8. Bonds Payable-credit for issuance for cash .......... 9. Retained Earnings-debit for cash dividends paid 10. Equipment-credit for items sold 11. Accumulated Depreciation Equipment-debit for fully depreciated items discarded