Watson Corporation, which uses IFRS, is using the indirect method to prepare its 2020 statement of cash flows and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. A list of items that may affect the statement follows:

Select from the options provided the appropriate item that showshow each item will affect Watson's 2020 statement of cash flows. Unless stated otherwise, assume that the transaction was for cash.

A. Increase in accounts receivable (Select all that apply)

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

B. Decrease in accounts receivable.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

C. Issue of shares

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

D. Depreciation expense

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

E. Sale of land at carrying amount

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

F. Sale of land at a gain

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

G. Payment of dividends charged to retained earnings

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

H. Purchase of land and building

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

I. Purchase of long-term investment in bonds, reported at amortized cost.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

J. Increase in accounts payable.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

K. Decrease in accounts payable.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

L. Loan from bank by signing note payable.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

M. Purchase of equipment by issuing a note payable

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

N. Increase in inventory.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

O. Issue of bonds

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

P. Retirement of bonds

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

Q. Sale of equipment at a loss.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

R. Purchase of corporation's own shares

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

S. Acquisition of equipment using a finance lease.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

T. Conversion of bonds payable into common shares.

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

U. Goodwill impairment loss

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

V. Interest paid on self-constructed building

> Added to net income in the operating section

> Deducted from net income in the operating section

> Non-cash investing and/or financing activity disclosed in notes to the financial statement

> Cash payment in financing section

> Cash payment in investing section

> Cash receipt in financing section

> Cash receipt in investing section

P.S.: THERE ARE NO MORE INFORMATION AVAILABLE IN THE QUESTION. THATS IT.