Use the information below to answer the following question(s):Howard Co. uses the direct method to prepare its operating activities section of the statement of cash flows. Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate no effect on net income. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate no effect on cash flows.Howard Co. purchased land by issuing a note payable in the amount of $150,000.
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What will be an ideal response?
(NA) (NA) (NA) (NA)
Purchasing land by issuing a note does not affect net income. It is reported in the schedule of noncash investing and financing activities, but not on the statement of cash flows itself.
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