INSTRUCTIONS: Selected data from various accounts during a fiscal year are presented below. By the use of x’s, indicate whether each of the items will be (1) added to or (2) deducted from net income in arriving at cash flows from operating activities as reported on the statement of cash flows using the indirect method. If the change is not reported in the determination of cash flows from operating activities, place an x in the Not Reported column.
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Cash Flows from Operating Activities
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Added
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Deducted
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to Net
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From Net
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Not
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Income
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Income
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Reported
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0. Stock dividends declared ..........................................................
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X
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1. Amortization of bond discount ..................................................
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2. Building and land purchased by issuing common stock .....
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3. Decrease in prepaid expenses ................................................
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4. Depreciation expense on equipment ......................................
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5. Decrease in dividends payable ................................................
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6. Common stock issued for cash ................................................
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7. Decrease in inventories .............................................................
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8. Decrease in accounts payable .................................................
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9. Gain on sale of land ...................................................................
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10. Amortization expense on patents ............................................
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11. Gain on sale of long-term investments ...................................
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12. Increase in accounts receivable ...............................................
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