The statement of cash flows categorizes like transactions for optimal reporting. Identify each item as a(n): (Click the icon to view the items.) The indirect method is used to report cash flows from operating activities. a. Loss on sale of land. More info - Operating activity-addition to net income (O+)or subtraction from net income (O-) - Investing activity - cash inflow (I+) or cash outflow (I-) - Financing activity-cash inflow (F+ ) or cash outflow (F-) - Non-cash investing and financing activity (NIF) - Activity that is not used to prepare the indirect statement of cash flows (N)