Use the Following Codes to Indicate How the Cash Flow

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.)
-Increase in the inventory balance.

A) Operating activity--add to net income
B) Operating activity--deduct from net income
C) Inflow from investing activity
D) Outflow from investing activity
E) Inflow from financing activity
F) Outflow from financing activity
G) Noncash investing and financing activity
H) Not reported on statement of cash flows