Each of the items found below might appear on a statement of cash flows.

Statement
Section

Statement
Format

Added or
Subtracted?

1. Decrease in taxes payable

2. Cash paid to suppliers of inventory

3. Dividends declared and paid

4. Depreciation expense

5. Sale of stock

6. Increase in accounts receivable

7. Cash collected from customers

8. Purchase of plant assets

9. Payments on long term debt

10. Cash paid for taxes

11. Increase in wages payable

12. Purchase of treasury stock

For each item, indicate answers as shown.

a. Would it appear on the statement of cash flows under the operating activities (O), investing activities (I), or financing activities (F) section?

b. Would it appear in the direct format (D), indirect format (I), or in both formats (B)?

c. Would it be added (1) or subtracted (2) in computing cash flow?