Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: (Click the icon to view the items.) Identify each item as a(n): 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 -) Activity that is not used to prepare the indirect statement of cash flows (N) a. Increase in accounts payable f. Loss on sale of land b. Payment of dividends c. Decrease in accrued liabilities g. Depreciation expense h. Increase in merchandise inventory i. Decrease in accounts receivable d. Issuance of common stock e. Gain on sale of building j. Purchase of equipment

Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: (Click the icon to view the items.) Identify each item as a(n): 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 -) Activity that is not used to prepare the indirect statement of cash flows (N) a. Increase in accounts payable f. Loss on sale of land b. Payment of dividends c. Decrease in accrued liabilities g. Depreciation expense h. Increase in merchandise inventory i. Decrease in accounts receivable d. Issuance of common stock e. Gain on sale of building j. Purchase of equipment

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 16CE

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