The following table presents selected items from a recent cash flow statement of Nordstrom, Inc.

a. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities (Nordstrom uses the indirect method of reporting.)

b. For each item, determine whether it will appear as a positive or negative in determining the net increase in cash and cash equivalents.

Transcribed Image Text:

NORDSTROM, INc. Consolidated Statement of Cash Flows-Selected Itams 1 Deorease in accounts receivable 2 Capital expenditures Proceeds from long-term borrowings Increase in deferred income tax net liability 5. 3 4 Principal payments on long term borrowings Increase in merchandise inventories Increase in prepaid expenses and other assets Proceeds from Issuances under stock compensation plans Increase in accounts payable Net earnings Payments for repurchase of common stock Increase in accrued salaries, wages, and related benefits Cash dividends paid Depreciation and amortization expenses 8 10 11 12 13 14