FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Classifying
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:
a. Purchase of investments | |
b. Disposal of equipment | |
c. Payment for selling expenses | |
d. Collection of |
|
e. Cash sales | |
f. Issuance of bonds payable |
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- Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…arrow_forwardWhat types of transactions are reported in the non-cash investing and financing activities section of the statement of cash flows?arrow_forwardWhich of the following is reported as an investing activity in the statement of cash flows? The payment of interest on bonds The receipt of dividend revenue The payment of cash dividends The sale of machineryarrow_forward
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