Exercise 12-1 Indirect: Classifying cash flows Qc11 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an x in the appropriate column. Statement of Cash Flows Not Noncash Investing and Financing Activities Operating Investing Financing Activities Activities Activities Reported on Statement or in Notes 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