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The following table presents selected items from a recent cash flow statement of Nordstrom, Inc. a. For each item, determine whether the amount would be
The following table presents selected items from a recent cash flow statement of Nordstrom, Inc. a. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities (Nordstrom uses the indirect method of reporting.) b. For each item, determine whether it will appear as a positive or negative in determining the net increase in cash and cash equivalents. 1. DECREASE IN ACCOUNTS RECEIVABLE 2. CAPITAL EXPENDITURES 3. PROCEEDS FROM LONGTERM BORROWINGS 4. INCREASE IN DEFERRED INCOME TAX NET LIABILITY 5. PRINCIPAL PAYMENTS ON LONG TERM BORROWINGS 6. INCREASE IN MERCHANDISE INVENTORIES 7. INCREASE IN PREPAID EXPENSES AND OTHER ASSETS 8. PROCEEDS FROM ISSUANCES UNDER STOCK COMPENSATION PLANS 9. INCREASE IN ACCOUNTS PAYABLE 10. NET EARNINGS 11. PAYMENTS FOR REPURCHASE OF COMMON STOCK 12. INCREASE IN ACCRUED SALARIES, WAGES, AND RELATED BENEFITS 13. CASH DIVIDENDS PAID 14. DEPRECIATION AND AMORTIZATION EXPENSES
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