3 Classifying items on the indirect statement of cash flows Destiny Corporation is preparing state s16- The Statement of C wing items for you to consider in preparing the statement its statement of cash flows by the indiret method. Learning Obje a. Increase in accounts payable b. Payment of dividends c. Decrease in accrued liabilities f. Loss on sale of land g. Depreciation expense h. Increase in merchandise inventory i. Decrease in accounts receivable j. Purchase of equipment d. Issuance of common stock e. Gain on sale of building Identify each item as a(n): Operating activityaddition to net income (O+) or subtraction from net income (O- Investing activity- cash inflow (l+) or cash outflow (1-) Financing activity-cash inflow (F+) or cash outflow (F Activity that is not used to prepare the indirect statement of cash flows ()