When preparing a statement of cash flows using the indirect method, which of the following is correct?
A. A loss on the sale of land should be added to net income in the operating activities section.
B. The issuance of a stock dividend should be a use of cash in the financing activities section.
C. The declaration of a cash dividend should be a use of cash in the financing activities section.
D. The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.
E. Proceeds from the sale of equipment should be added to net income in the operating activities section.
Answer: A
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