1. Your answer is partially correct. Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using...


1.







Your answer is partially correct.






Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2020 statement of cash flows.

















































Code Letter



Effect


A

Added to net income in the operating section

D

Deducted from net income in the operating section

R-I

Cash receipt in investing section

P-I

Cash payment in investing section

R-F

Cash receipt in financing section

P-F

Cash payment in financing section

N

Noncash investing and financing activity







































































































































(a)


Purchase of land and building.


select a code letter


(b)


Decrease in accounts receivable.


select a code letter


(c)


Issuance of stock.


select a code letter


(d)


Depreciation expense.


select a code letter


(e)


Sale of land at book value.


select a code letter


(f)


Sale of land at a gain.


select a code letter


(g)


Payment of dividends.


select a code letter


(h)


Increase in accounts receivable.


select a code letter


(i)


Purchase of available-for-sale debt investment.


select a code letter


(j)


Increase in accounts payable.


select a code letter


(k)


Decrease in accounts payable.


select a code letter


(l)


Loan from bank by signing note.


select a code letter


(m)


Purchase of equipment using a note.


select a code letter


(n)


Increase in inventory.


select a code letter


(o)


Issuance of bonds.


select a code letter


(p)


Redemption of bonds payable.


select a code letter


(q)


Sale of equipment at a loss.


select a code letter


(r)


Purchase of treasury stock.


select a code letter































Jun 10, 2022
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