Answer: Please see explanation for answer
Explanation:
Purchase of land and build ===--Cash payment in investing section
Decrease in accounts receivables-----Added to net income in the operating section
Issuance of stock-----Cash receipt in financing section
Depreciation expense-----Added to net income in the operating section
Sale of land at book value-------Cash receipt in investing section
Sale of land at a gain--------Cash receipt in investing section AND deducted from net income in the operating section
Payment of dividends-------Cash payment in the financing section
Increase in accounts receivables-------Deducted from net income in operating section
Purchase of available-for-sale investment-----Cash payment in investing section
Increase in accounts payable-----Added to net income in operating section
Decrease in accounts payable-------Deducted from net income in operating section
Loan from bank by signing note------Cash receipt in financing section
Purchase of equipment using a note-----Non-cash investing and financing activity
Increase in inventory-----Deducted from net income in operating section
Issuance of bonds-----Cash receipt in financing section
Redemption of bonds payable------Cash payment in financing section
Sale of equipment at a loss---Cash receipt in investing section AND added to net income in the operating section
Purchase of treasury stock----Cash payment in financing section
or using the code, we have
a) Purchase of land and building - P-I
b) Decrease in accounts receivable - A
c) Issuance of stock - R-F
d) Depreciation expense - A
e) Sale of land at book value - R-I
f) Sale of land at a gain. - R-I and D
g) Payment of dividends - P-F
h) Increase in accounts receivable - D
i) Purchase of available-for-sale investment - P-I
j) Increase in accounts payable - A
k) Decrease in accounts payable - D
l) Loan from bank by signing note - R-F
m) Purchase of equipment using a note - N
n) Increase in inventory - D
o) Issuance of bonds. - R-F
p) Retirement of bonds payable - P-F
