Smith Clinic, Inc., is preparing its statement of cash flows (indirect method) for the year ended March

Question:

Smith Clinic, Inc., is preparing its statement of cash flows (indirect method) for the year ended March 31, 2014. Consider the following items in preparing the company’s statement of cash flows. Identify each item as an operating activity—addition to net income (O+) or subtraction from net income (O-), an investing activity (I), a financing activity (F), or an activity that is not used to prepare the cash flows statement by the indirect method (N). Place the appropriate symbol in the blank space.
a. Decrease in accrued liabilities
b. Net income
c. Decrease in prepaid expense
d. Collection of cash from customers
e. Purchase of equipment with cash
f. Retained earnings
g. Payment of dividends
h. Increase in
i. Decrease in
j. Gain on sale of building
k. Loss on sale of land
l. Depreciation expense
m. Increase in inventory
n. Issuance of common stock

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...