For each of the events listed below, select the category that best describes its effect on a statement of cash flows. Assume that the statement of cash flows is being prepared in accordance with ASPE using the indirect method. Your categories are as follows: Cash provided/used by operating activities Cash provided/used by investing activities Cash provided/used by financing activities Not a cash flow item Events: _____ 1. Issuance of common shares _____ 2. Purchase of land and building _____ 3. Redemption of bonds _____ 4. Proceeds on sale of equipment _____ 5. Depreciation of machinery _____ 6. Amortization of patent _____ 7. Issuance of bonds in exchange for land _____ 8. Payment of cash dividends _____ 9. Exchange of furniture for equipment _____ 10. Loss on disposal of equipment _____ 11. Increase in accounts receivable during year _____ 12. Decrease in accounts payable during year
For each of the events listed below, select the category that best describes its effect on a statement of cash flows. Assume that the statement of cash flows is being prepared in accordance with ASPE using the indirect method. Your categories are as follows: Cash provided/used by operating activities Cash provided/used by investing activities Cash provided/used by financing activities Not a cash flow item Events: _____ 1. Issuance of common shares _____ 2. Purchase of land and building _____ 3. Redemption of bonds _____ 4. Proceeds on sale of equipment _____ 5. Depreciation of machinery _____ 6. Amortization of patent _____ 7. Issuance of bonds in exchange for land _____ 8. Payment of cash dividends _____ 9. Exchange of furniture for equipment _____ 10. Loss on disposal of equipment _____ 11. Increase in accounts receivable during year _____ 12. Decrease in accounts payable during year
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 1P: Classification of Cash Flows A company's statement of cash flows and the accompanying schedule of...
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For each of the events listed below, select the category that best describes its effect on a statement of cash flows. Assume that the statement of cash flows is being prepared in accordance with ASPE using the indirect method. Your categories are as follows:
- Cash provided/used by operating activities
- Cash provided/used by investing activities
- Cash provided/used by financing activities
- Not a cash flow item
Events:
_____ 1. Issuance of common shares
_____ 2. Purchase of land and building
_____ 3. Redemption of bonds
_____ 4. Proceeds on sale of equipment
_____ 5. Depreciation of machinery
_____ 6. Amortization of patent
_____ 7. Issuance of bonds in exchange for land
_____ 8. Payment of cash dividends
_____ 9. Exchange of furniture for equipment
_____ 10. Loss on disposal of equipment
_____ 11. Increase in accounts receivable during year
_____ 12. Decrease in accounts payable during year
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