V. Cash Flow Statement (10 marks) Assuming a cash flow statement is prepared using the indirect method, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the cash flow statement. Codes: Cash flows from operating activities (Add to profit) D Cash flows from operating activities (Deduct from profit) IA Cash flows from investing activities FA Cash flows from financing activities Category 1. Common shares are issued for cash. 2. Merchandise inventory increased during the period. 3. Depreciation expense recorded for the period. 4. Building was purchased for cash. 5. Bonds payable were acquired and retired at their carrying value. 6. Accounts payable decreased during the period. 7. Prepaid expenses decreased during the period. 8. Investment in common shares of another company were acquired for cash 9. Land is sold for cash at an amount equal to carrying amount. 10. Loss on sale of equipment was recorded on the income statement