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 activitiesCash provided/used by investing activitiesCash provided/used by financing activitiesNot a cash flow itemEvents:_____ 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

Issuance of common sharesThis event increases cash inflows as the company raises capital from…

Answered: For each of the events listed below,…

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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Question

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: