Answer:
Please see the answer below:
Explanation:
a. Increase in inventory
an operating activity subtraction from net income.
b. Issuance of common stock
a financing activity
.
c. Decrease in accrued liabilities
an operating activity addition to net income
.
d. Net income
It is the starting point of Cash Flow Statement from which addition and subtraction are made.
e. Decrease in prepaid expense
an operating activity addition to net income
.
f. Collection of cash from customers
an operating activity addition to net income
.
g. Purchase of equipment with cash
an investing activity
.
h. Retained earnings
an activity that is not used to prepare the cash flows statement.
i. Payment of dividends
a financing activity
.
j. Increase in accounts payable
an operating activity addition to net income
.
k. Decrease in accounts receivable
an operating activity addition to net income
.
L. Gain on sale of a building
an operating activity subtraction from net income; an investing activity
.
m. Loss on sale of land
an operating activity addition to net income
.
n. Depreciation expense
an operating activity addition to net income.