Novak SpA is preparing its 2019 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 2019 statement of cash flows.
Code Letter Effect
A........................Added to net income in the operating section
D........................Deducted from net income in the operating section
R-I......................Cash receipt in investing section
P-I......................Cash payment in investing section
R-F.....................Cash receipt in financing section
P-F.....................Cash payment in financing section
N.......................Non-cash investing and/or financing activity in notes
Items
______ a. Purchase of land and building.
______ b. Decrease in accounts receivable.
______ c. Issuance of shares.
______ 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 an equity 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. Retirement of bonds payable.
______ q. Sale of equipment at a loss.
______ r. Purchase of treasury shares.