Novak Corporation is preparing its 2015 statement of cash flows, using the indirect method. The following is a list of items that may affect the statement. Using the code letters provided, indicate how each item will affect Novak’s 2015 statement of cash flows.

Items ____

(a) Purchase of land and building. ____ (j) Increase in accounts payable.
____

(b) Decrease in accounts receivable. ____ (k) Decrease in accounts payable.
____

(c) Issuance of shares. ____ (l) Loan from bank by signing note.
____

(d) Depreciation expense. ____ (m) Purchase of equipment using a note.
____

(e) Sale of land at book value. ____ (n) Increase in inventory.
____

(f) Sale of land at a gain. ____ (o) Issuance of bonds.
____ (g) Payment of dividends. ____ (p) Retirement of bonds payable.
____ (h) Increase in accounts receivable. ____ (q) Sale of equipment at a loss.
____ (i) Purchase of an equity investment. ____ (r) Purchase of treasury shares.

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Code Letter A D R-I P-I R-F P-F N Effect Added to net income in the operating section Deducted from net income in the operating section Cash receipt in investing section Cash payment in investing section Cash receipt in financing section Cash payment in financing section Non-cash investing and/or financing activity in notes