Statement of cash flows by the indirect method

Assignment Help Financial Accounting

Reference no: EM131261479

Triumph Corporation is preparing its Statement of Cash Flows by the indirect method. Triumph has the following items for you to consider in preparing the statement:

_a. Increase Accounts Payable

_b. payments of dividend

_c. decrease in accrued liabilities

_d. Issuance of common stock

_e. gain on sale of building

_f. loss on sale of land

_g. depreciation expense

_h. increase in inventory

_i. decrease in accounts recievable

_j. purchase of equipment

Requirement

Identify each item as an

Operating activity—addition to net income (O+), or subtraction from net income (O–)

Investing activity—addition to cash flow (I+), or subtraction from cash flow (I–)

Financing activity—addition to cash flow (F+), or subtraction from cash flow(F–)

Activity that is not used to prepare the indirect cash-flow statement (N)

Reference no: EM131261479

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