Managerial Accounting
Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 12, Problem 1E
To determine

Introduction:

Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business i.e. operating activities, investing activities and financing activities.

To indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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Classification of Cash Flows:  For each of the following items, indicate whether the cash flow relates to an operating activity, an investing activity, or a financing activity. Cash receipts from customers for services rendered Sale of long-term investments for cash Acquisition of PPE for cash Payment of income taxes Bonds payable issued for cash Payment of cash dividends declared in previous year Purchase of short-term investments (not cash equivalents) for cash
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Managerial Accounting

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