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For each of the following items, indicate by using theappropriate code letter, how the item should be reported in thestatement of cash flows, using the direct method.
(Points : 10)

Potential Matches:
1 : Declaration and payment of a cash dividend.
2 : Decrease in accounts receivable during a period.
3 : Conversion of bonds payable into common stock.
4 : Purchase of land for cash.
5 : Decrease in merchandise inventory during a period.
6 : Decrease in accounts payable during a period.
7 : Issuance of preferred stock for cash.
8 : Sale of equipment for cash at book value.
Answer
: Added in determining cash receiptsfrom customers
: Added in determining cash paymentsto suppliers
: Deducted in determining cashpayments to suppliers
: Cash outflow—investing activity
: Cash inflow—investing activity
: Cash outflow—financing activity
: Cash inflow—financing activity
: Significant noncash investing andfinancing activity

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Trinidad Tremblay
Trinidad TremblayLv2
28 Sep 2019

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