Chapter Outline Homework Exercise 12-1 Indirect: Classifying cash flows C1 L Indicate where each item would appear on a statement of cash flows using the indirect method by placing an x in the appropriate column. a. Declared and paid a cash dividend b. Recorded depreciation expense c. Paid cash to settle long-term note payable d. Prepaid expenses increased in the year e. Accounts receivable decreased in the year f. Purchased land by issuing common stock g. Inventory increased in the year h. Sold equipment for cash, yielding a loss i. Accounts payable decreased in the year j. Income taxes payable increased in the year Statement of Cash Flows Financing Activities Activities Operating Investing Activities Noncash Investing and Financing Activities Not Reported on Statement or in Notes

Chapter Outline Homework Exercise 12-1 Indlrect: Classifying cash flows C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an x in the appropriate column