Question

Statement of Cash flows Non-cash Not Reported Investing & on Statement Operating Investing Financing Financing or in Notes Activities Activities Activities A. Declared and paid a cash dividend X B. Recorded depreciation expense X C. Paid cash to settle long-term note payable XD. Prepaid expenses increased in the year X E. Accounts receivable decreased in the year X F. Purchased land by issuing common stock X G. Inventory increased in the year XH. Sold equipment for cash, yielding a loss XI. Accounts payable decreased in the year X J. Income taxes payable increased in the year XIndicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s).

Answer 1

Answer and Explanation:

The classification is shown in the attachment. Please find the attachment below:

As we know that

Operating activities refers to the activities in which the changes with respect to the working capital is recorded

Investing activities refers to those activities in which the purchase and sale of long term assets are recorded

And, the last one is financing activity which deals with the stockholder equity account i.e issuance of the stock, cash dividend paid, etc