Statement of Cash Flows Using the letters listed below, indicate the section of the Cash Flow Statement wher?

Statement of Cash Flows

Using the letters listed below, indicate the section of the Cash Flow Statement where the following transactions or events would be located and whether it has a positive or negative effect on cash flows.

O Operating Activities Section

I Investing Activities Section

F Financing Activities Section

S Schedule of non-cash investing and financing activities

N Not shown at all on the formal statement

Note: Both parts of each answer must be correct to earn points.

Activity Positive/

Negative or No Effect

F + (Example) Sale of common stock for cash.

__O___ __+____ 1. Depreciation expense for the year.

__O___ ___-__ 2. Increase in accounts receivable from beginning of

year to end of year.

__I___ ______ 3. Purchase of building by the issuance of common stock.

___I__ ____+__ 4. Sale of land for cash.

__O___ ___+__ 5. Net Income for year.

__F___ ______ 6. Loss on sale of land.

______ ______ 7. Payment of a mortgage note payable.

______ ______ 8. Decrease in accounts payable from beginning of year

to end of year.

______ ______ 9. Issuance of a bond payable for cash.

______ ______ 10. Payment of a cash dividend.