E17-11 Indicate whether or not each of the items below would be shown on a cash flow statement with operating activities reported using the indirect method. Indicate whether the adjustment is added to, is deducted from, or has no effect on the cash flow statement. If the transaction affects the cash flow statement state whether it relates to operating activities, investing activities, or financing activities. Provide the reason for your answer. a. The payment of interest on long-term debt. b. The declaration and distribution of a common stock dividend. c. A decrease in accounts payable. d. The sale of office equipment for its book value. e. The borrowing of funds for future expansion through the sale of bonds. f. A gain on the sale of property, plant, and equipment. 3. The purchase of equipment in exchange for common shares. h. Amortization expense-buildings. i. A decrease in merchandise inventory. j. An increase in prepaid expenses. k Amortization of the premium on bonds payable. 1. An investment in a money market fund. m. The receipt of interest on long-term investments. n. The purchase of office equipment. o. Receiving funds for future expansion through the sale of common shares. p. Amortization of intangible assets. 2 4 Classifying transactions for the cash flow statement