Answer:
The answer is:
a. Increase in accounts payable----
O+
b. Payment of dividends------ F-
c. Decrease in accrued liabilities---- O-
d. Issuance of common stock---- F+
e. Gain on sale of building------ O-
f. Loss on sale of land------ O+
g. Depreciation expense------- O+
h. Increase in inventory------- O-
i. Decrease in accounts receivable--- O+
j. Purchase of equipment---- I-
Explanation:
a. Increase in accounts payable----
O+
Increase in accounts payable is an operating inflow because more goods will be bought on credit. Its like the monetary value comes in.
b. Payment of dividends------ F-
Outflow of money paid to the shareholders that are financing the company.
c. Decrease in accrued liabilities---- O-
Operating outflow because decrease in accrued liabilities means money have been paid to settle some outstanding debts.
d. Issuance of common stock---- F+
Money comes in from shareholders to finance the company.
e. Gain on sale of building------ O-
This is a non cash transaction under indirect transaction. The gain will be taken out to show the true value of net income because it was part of the calculation of net income in the Profit or loss statement
f. Loss on sale of land------ O+
This is a non cash transaction under indirect cash flow. The loss will be added to show the true value of net income because it was part of the calculation of net income in the Profit or loss statement
g. Depreciation expense------- O+
This is a non cash transaction under indirect cash flow. The expense
will be added to show the true value of net income because it was part of the calculation of net income in the Profit or loss statement
h. Increase in inventory------- O-
Outflow because money was used to purchase inventory
i. Decrease in accounts receivable--- O+
Operating inflow because customers paid part of what they are owing.
j. Purchase of equipment---- I-
Investing outflow because money was used to purchase long-term asset
