Question

The Buckle, Inc., operates 420 stores in 41 states, selling brand name apparel like Lucky jeans and Fossil belts and watches. Some of the items included in its 2010 statement of cash flows presented using the indirect method are listed here. 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. Purchase of investments.
2. Proceeds from issuance of stock.
3. Purchase of property and equipment.
4. Depreciation.
5. Accounts payable (decrease).
6. Inventories (increase).

Answer 1

Answer and Explanation:

The classification is as follows;

1. investing activities (I) - cash outflow

2. financing activities (F) section - cash inflow

3. investing activities (I) - cash outflow

4. operating activities (O) - cash inflow

5. operating activities (O) - cash outflow

6. operating activities (O) - cash outflow

In this way it should be distributed

Hence, the above should be the answer and the same should be relevant