Novak Corporation is preparing its 2025 statement of cash flows, using the indirect method. Presented below is
Question:
Novak Corporation is preparing its 2025 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2025 statement of cash flows.
Items
___ a. Purchase of land and building.
___ b. Decrease in accounts receivable.
___ c. Issuance of stock.
___ d. Depreciation expense.
___ e. Sale of land at book value.
___ f. Sale of land at a gain.
___ g. Payment of dividends.
___ h. Increase in accounts receivable.
___ i. Purchase of available-for- sale debt investment.
___ j. Increase in accounts payable.
___ k. Decrease in accounts payable.
___ l. Loan from bank by signing note.
___ m. Purchase of equipment using a note.
___ n. Increase in inventory.
___ o. Issuance of bonds.
___ p. Redemption of bonds payable.
___ q. Sale of equipment at a loss.
___ r. Purchase of treasury stock.
Step by Step Answer:
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield