Novak SpA is preparing its 2022 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 2022 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.