Novak Corporation is preparing its 2012 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 2012 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                    Noncash investing and financing activity

Items