NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of its association with athletes such as LeBron James, Roger Federer, and Madison Keys. Some of the items included in its recent statement of cash flows presented using the indirect method are listed here.
a) Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement
1. Additions to long-term debt.
2. Depreciation
3. Additions to equipment.
4. Increase (decrease) in notes payable. (The amount is owed to financial institutions.)
5. (Increase) decrease in other current assets
6. Cash received from disposal of equipment.
7. Reductions in long-term debt.
8. Issuance of stock.
9. (Increase) decrease in inventory.
10. Net income

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Zviko Zviko · Answer 1 · 2020-05-04T11:14:21+02:00

Answer:

1. Additions to long-term debt. (F)

2. Depreciation (O)

3. Additions to equipment. (I)

4. Increase (decrease) in notes payable. (The amount is owed to financial institutions.) (O)

5. (Increase) decrease in other current assets (O)

6. Cash received from disposal of equipment. (I)

7. Reductions in long-term debt. (F)

8. Issuance of stock. (F)

9. (Increase) decrease in inventory. (O)

10. Net income (O)

Explanation:

operating activities (O)

Include cash items that derive revenues and profit in the period

investing activities (I)

Include Capital expenditure and Proceeds during the period

financing activities (F)

Include items of cash used to finance the company during the period