P2 B — Indirect Method

P2 B — Indirect Method

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.

____    1.         Decrease in accounts payable during a period

____    2.         Declaration and payment of a cash dividend.

____    3.         Loss on sale of land.

            4.         Decrease in accounts receivable during a period.

____    5.         Redemption of bonds for cash.

____    6.         Proceeds from sale of equipment at book value.

____    7.         Issuance of common stock for cash.

____    8.         Purchase of a building for cash.

____    9.         Acquisition of land in exchange for common stock.

____    10.       Increase in merchandise inventory during a period.