A company’s statement of cash flows and the accompanying schedule of investing and financing activities not affecting cash may contain the following major sections:

A. Net Cash Flow From Operating Activities

B. Cash Flows From Investing Activities

C. Cash Flows From Financing Activities

D. Investing and Financing Activities Not Affecting Cash The following is a list of items that might appear on a company’s statement of cash flows or in the accompanying schedule.

______1. Decrease in accounts payable

______2. Payment of dividends

______3. Increase in income taxes payable

______4. Proceeds from issuance of note

______5. Payment for purchase of available for- sale temporary investments

______6. Amortization of premium on investment in bonds

______7. Increase in prepaid expenses

______8. Payment of note

______9. Gain on sale of equipment

______10. Proceeds from sale of land

______11. Net income

______12. Payment for acquisition of building

______13. Depreciation expense

______14. Issuance of common stock for land

______15. Proceeds (principal) from collection of note

______16. Amortization of discount on bonds payable

______17. Decrease in deferred taxes payable

______18. Proceeds from issuance of bonds

______19. Issuance of stock dividend

______20. Payment for purchase of treasury stock

______21. Depletion expense

______22. Increase in inventory

______23. Conversion of preferred stock to common stock

______24. Proceeds from issuance of stock

______25. Lease of equipment under capital lease

______26. Proceeds from sale of patent

Required

In the space provided and using the letters A through D, indicate in which section of the statement of cash flows (or the accompanying schedule) the preceding items would most likely be classified. After each letter indicate with a plus (+) or a minus (−) whether the items would be reported as an increase (inflow) or decrease (outflow). If an item would not be reported in the statement (or the accompanying schedule), put an X in the space provided.