Tracadie Inc. (Tracadie) uses the indirect method to calculate and report cash from operations in its cash flow statement. For each of the following items indicate whether the item would be added to net income, deducted from net income, or not be relevant when calculating cash from operations. Assume Tracadie uses IFRS. State any other assumptions you make.
a. Loss on the sale of office furniture from Tracadie’s executive offices.
b. Dividends paid.
c. Purchase of a building for cash.
d. Increase in accounts payable.
e. Decrease in inventory.
f. Proceeds from the sale of land.
g. Decrease in accrued liabilities.
h. Increase in long-term debt.
i. Gain on the sale of equipment used by Tracadie to provide its services.
j. Increase in accounts receivables.
k. Depreciation expense.