Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement:

O + a. Increase in accounts payable

F - b. Payment of dividends

O - c. Decrease in accrued liabilities

F + d. Issuance of common stock

O - e. Gain on sale of building

O + f. Loss on sale of land

O + g. Depreciation expense

O - h. Increase in merchandise inventory

O + i. Decrease in accounts receivable

I - j. Purchase of equipment

O + a. Increase in accounts payable

F - b. Payment of dividends

O - c. Decrease in accrued liabilities

F + d. Issuance of common stock

O - e. Gain on sale of building

O + f. Loss on sale of land

O + g. Depreciation expense

O - h. Increase in merchandise inventory

O + i. Decrease in accounts receivable

I - j. Purchase of equipment

Explanation:

The requirement of the question is to indicate whether each of the items is an addition to addition to net income (O+) or subtraction (O-) under operating activities section, investing activity (cash inflow I+), (cash outflow I-), financing activity (cash inflow F+), (cash outflow F-) and activity not used to prepare the cash flows.

All the signs above are correct.