Keri Corporation is preparing its statement of cash flows by the indirect method. Keri Corporation has the following items for you to consider in preparing the statement: View the items. Identify each item as a(n): • Operating activity-addition to net income (+) or subtraction from net income (-) Investing activity-cash inflow (+) or cash outflow (-) • Financing activity-cash inflow (+) or cash outflow (-) • Activity that is not used to prepare the indirect statement of cash flows a. Increase in accounts payable b. Payment of dividends c. Decrease in accrued liabilities d. Issuance of common stock e. Gain on sale of building f. Loss on sale of land Operating activity + Financing activity - Operating activity-
Keri Corporation is preparing its statement of cash flows by the indirect method. Keri Corporation has the following items for you to consider in preparing the statement: View the items. Identify each item as a(n): • Operating activity-addition to net income (+) or subtraction from net income (-) Investing activity-cash inflow (+) or cash outflow (-) • Financing activity-cash inflow (+) or cash outflow (-) • Activity that is not used to prepare the indirect statement of cash flows a. Increase in accounts payable b. Payment of dividends c. Decrease in accrued liabilities d. Issuance of common stock e. Gain on sale of building f. Loss on sale of land Operating activity + Financing activity - Operating activity-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Keri Corporation is preparing its statement of cash flows by the indirect method. Keri Corporation has the following items for you to consider in preparing the statement:
View the items.
Identify each item as a(n):
• Operating activity-addition to net income (+) or subtraction from net income (-)
Investing activity-cash inflow (+) or cash outflow (-)
Financing activity-cash inflow (+) or cash outflow (-)
Activity that is not used to prepare the indirect statement of cash flows
a. Increase in accounts payable
Operating activity +
b. Payment of dividends
Financing activity -
c. Decrease in accrued liabilities
Operating activity-
d. Issuance of common stock
e. Gain on sale of building
f. Loss on sale of land
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