ng Objectives 1, 2 S-F:16-3 Classifying items on the indirect statement of cash flows Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: a. Increase in accounts payable f. Loss on sale of land g. Depreciation expense b. Payment of dividends c. Decrease in accrued liabilities h. Increase in merchandise inventory d. Issuance of common stock i. Decrease in accounts receivable e. Gain on sale of building j. Purchase of equipment Identify each item as a(n): Operating activity-addition to net income (O+) or subtraction from net income (0-) Investing activity-cash inflow (I+) or cash outflow (I-) Financing activity-cash inflow (F+) or cash outflow (F-) Activity that is not used to prepare the indirect statement of cash flows (N)