Exercise 12-1 Indirect: Cash flow classification LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the approprii column(s). (More than one column may be used.) Statement of Cash Flows Noncash Investing & Financing Activities Not Reported on Statement or in Notes Operating Activities Investing Activities Financing Activities a. Declared and paid a cash dividend b. Recorded depreciation expense cPaid cash to settle long-term note payable d. Prepaid expenses increased in the year e Accounts receivable decreased in the year Purchased land by issuing common stock 9 Inventory increased in the year h. Sold equipment for cash, yielding a loss i. Accounts payable decreased in the year Income taxes payable increased in the year Exercise 12-8 Cash flows from investing activities LO P3 a. Equipment with a book value of $81,500 and an original cost of $168,000 was sold at a loss of $34,000. b. Paid $115,000 cash for a new truck. c. Sold land costing $315,000 for $405,000 cash, yielding a gain of $90,000. d. Long-term investments in stock were sold for $91,400 cash, yielding a gain of $16,250. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indica minus sign.) Statement of Cash Flows (partial) Cash flows from investing activities