Question

For each of the following items, assuming the company reports cash flows from operations using the Indirect Method, Indicate whether the item is:

A positive cash flow from Operating activities = +O

A negative cash flow from Operating activities = -O

A positive cash flow from Financing activities = +F

A negative cash flow from Financing activities = -F

A positive cash flow from Investing activities =+I

A positive cash flow from Investing activities =-I

A non-cash financing and investing activity = N

Depreciation expense
Cash paid to acquire a patent
Interest income received
Proceeds from the sale of Land
Inventory decrease
Cash paid for dividends
Cash paid for interest on bond payable
Cash paid to purchase equipment
Net Income
Accounts receivable increase
Acquirinng land by issuing a note payable
Prepaid rent decrease
Cash paid on a note payable
Issuance of common stock for cash
Cash proceeds on the issuance of bonds

Answer 1

Depreciation Expense	+O
Cash Paid to acquire a patent	-I
Interest income received	+I
Proceeds from sale of land	+I
Inventory Decrease	+O
Cash Paid for Dividends	-F
Cash Paid for Interest on Bond Payable	-F
Cash paid for purchase of equipment	-I
Net Income	+O
Account Receivable Increase	-O
Acquiring land by issuing a note payable	N
Prepaid Rent decrease	+O
Cash Paid on note payable	-F
Issuance of common stock for cash	+F
Cash proceeds on the issuance of Bonds	+F