An analysis of comparative balance sheets, the current year's income statement and the general ledger accounts of Pierce Brosnan Corp. uncovered the following items. Assume


all items involve cash unless there is information to the contrary.

Prepare a statement of cash flows-indirect method.

\((\mathrm{SO} 3,4)\)

Classify transactions by type of activity. (SO 2)

(a) Purchase of land.

(d) Exchange of land for patent.

(b) Payment of dividends.

(e) Depreciation.

(c) Sale of building at book value.

(f) Redemption of bonds.

(g) Receipt of interest on notes receivable. (k) Payment of interest on notes payable.
(h) Issuance of capital stock.
(l) Conversion of bonds into common stock.
(m) Loss on sale of land.
(n) Receipt of dividends on investment in stock.
(j) Issuance of bonds for land \section*{Instructions}
Indicate how the above items should be classified in the statement of cash flows using the following four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.