cash flow statement

Assuming a cash flow statement is prepared using the indirect method; indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the cash flow statement. Code Operating activities Add to net earnings A Deduct from net earnings D Investing activities IA Financing activities FA Categor y 1. Common shares are issued for cash 2. Merchandise inventory increased during the period 3. Amortization expense recorded for the period 4. Building was purchased for cash 5. Bonds payable were acquired and retired at their carrying value 6. Accounts payable decreased during the period 7. Prepaid expenses decreased during the period 8. Common shares were reacquired for cash 9. Land is sold for cash at an amount equal to book value 10. Cash dividends are paid

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