SCF Preparation: The Thought Process . After you have set up the format for the SCF, Indirect Methed, you must look at the relevant informa tion and determine the following: Which category Cheading) should the information go under! Choices - Operating (0) Investing (1) Financing Schedule of Non-Cash Investing / Financing (S) Not reported on the SCF (NR) Does the item increase (+) or decrease - cash? EXAMPLES CATEGORY OR ON SCF . Cash Dividends Paid Increase in Equipment Depreciation Expense Decrease in Accounts Receivable Increase in Accounts Payable Increase in Capital Stock Issuance of Capital Stock in exchange for Equipment Amortization Expense Decrease in Land Stock Dividends Stock Splits 122