Triumph Corporation is preparing its Statement of Cash Flows by the indirect method. Triumph has the following items for you to consider in preparing the statement:
_a. Increase Accounts Payable
_b. payments of dividend
_c. decrease in accrued liabilities
_d. Issuance of common stock
_e. gain on sale of building
_f. loss on sale of land
_g. depreciation expense
_h. increase in inventory
_i. decrease in accounts recievable
_j. purchase of equipment
Requirement
Identify each item as an
Operating activity—addition to net income (O+), or subtraction from net income (O–)
Investing activity—addition to cash flow (I+), or subtraction from cash flow (I–)
Financing activity—addition to cash flow (F+), or subtraction from cash flow(F–)
Activity that is not used to prepare the indirect cash-flow statement (N)