The items in the following table may or may not appear in a statement of cash flows.

Operating (0) Direct (D)
Investing (I) Indirect (I) Increase (+)
Financing (F) Both (B) Decrease (-)
1. Issuance of stock
2. Principal payments-long-term notes payable
3. Depreciation expense
4. Increase in accounts receivable
5. Cash received from customers
6. Purchase of plant assets with cash
7. Decrease in payroll taxes payable
8. Cash paid to suppliers
9. Dividends paid
10. Increase in salaries payable
11. Cash paid for taxes
12. Purchase of treasury stock

Required:

For each of the items in the table, indicate the following:

Would the item appear on the statement of cash flows under operating activities (0), investing activities (I), or financing activities (F)? 12 MARKS

Would the item appear on the statement of cash flows using the direct method (D), indirect method (I), or both (B)? 12 MARKS

Would the item result in an increase(+) or a decrease(-) when computing cash flow?

12 MARKS