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For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
A. Added to net income
B. Deducted from net income
C. Cash outflow-investing activity
D. Cash inflow-investing activity
E. Cash outflow-financing activity
F. Cash inflow-financing activity
G. Significant noncash investing and financing activity
____ 1. Decrease in accounts payable during a period
____ 2. Declaration and payment of a cash dividend.
____ 3. Loss on sale of land.
____ 4. Decrease in accounts receivable during a period.
____ 5. Redemption of bonds for cash.
____ 6. Proceeds from sale of equipment at book value.
____ 7. Issuance of common stock for cash.
____ 8. Purchase of a building for cash.
____ 9. Acquisition of land in exchange for common stock.
____ 10. Increase in merchandise inventory during a period.
Independent Retailer
A retail establishment owned and operated by an individual or group, not part of a larger chain of stores.
Quality Personal Service
High-caliber, individualized attention or services provided to customers, ensuring their needs and expectations are met with a personal touch.
Corporate Chains
networks of retail or service outlets operated by a single company, offering the same brand and format across locations.
Clayton Act
A U.S. legislation enacted in 1914 aimed at promoting competition among businesses and preventing unfair anti-competitive practices.
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