Please also explain the three major categories of the statem

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

Solution

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