Question

Please also explain the three major categories of the statement of cash flows and under which category the following items belong. Also explain whether or not each item would be considered a source or use of cash for the period in question:

Inventory-increased for period
Net income-increased for period
Accounts receivables increase for period
Accounts payable decrease for period
Accruals decrease for period
Depreciation-increases for period
Stock issued
Property purchased
Bonds paid off
Inventories increase for period
Cash decreases
Notes payable increase for period
Bonds redeemed for period

Answer 1

Items	Categories of the statement of Cash flows
Inventory-increased for period	Operating activities	Use of cash
Net income-increased for period	Operating activities	Source of cash
Accounts receivables increase for period	Operating activities	Source of cash
Accounts payable decrease for period	Operating activities	Use of cash
Accruals decrease for period	Operating activities	Use of cash
Depreciation-increases for period	Operating activities	Source of cash
Stock issued	Operating activities	Source of cash
Property purchased	Investing activities	Use of cash
Bonds paid off	Financial activities	Use of cash
Inventories increase for period	Operating activities	Use of cash
Cash decreases	Operating activities	Use of cash
Notes payable increase for period	Financial activities	Source of cash
Bonds redeemed for period	Financial activities	Use of cash