Answer: The answers are provided below
Explanation:
a) Purchase of land and building = P-I
This will be a cash payment in investing section
b) Decrease in accounts receivable = A
This will be added to the net income in the operating section
c) Issuance of stock = R-F
This will be a cash receipt in financing section
d) Depreciation expense = A
This will be added to the net income in the operating section
e) Sale of land at book value = R-I
This will be a cash receipt in investing section.
f) Sale of land at a gain = R-I and D
This will be a cash receipt in investing section and deducted from the net income in the operating section
g) Payment of dividends = P-F
This will be a cash payment in financing section
h) Increase in accounts receivable = D
This will be deducted from net income in the operating section
i) Purchase of available-for-sale investment = P-I
This will be a cash payment in investing section
j) Increase in accounts payable = A
This will be added to the net income in the operating section
k) Decrease in accounts payable = D
This will be deducted from net income in the operating section
l) Loan from bank by signing note = R-F
This will be a cash receipt in financing section
m) Purchase of equipment using a note = N
This will be a noncash investing and financing activity
n) Increase in inventory = D
This will be deducted from net income in the operating section
o) Issuance of bonds = R-F
This will be a cash receipt in financing section
p) Retirement of bonds payable = P-F
This will be a cash payment in financing section
q) Sale of equipment at a loss = R-I and A
This will be a cash receipt in investing section and will be added to the net income in the operating section
r) Purchase of treasury stock = P-F
This will be a cash payment in financing section
