Classify each of the following transactions and economic events as an operating, investing, or financing cash flow; a cash equivalent; or whether the item has no effect on cash flow. Also, indicate whether each item increases or decreases cash flow. State whether the treatment differs between IFRS and ASPE.
a. Equipment is purchased for cash.
b. Capital assets are depreciated.
c. Cash dividends are paid to shareholders.
d. Interest is paid on a bond.
e. Accounts receivable are collected from customers.
f. Land is purchased in exchange for shares in the company.
g. Cash is obtained from a lender in exchange for a long-term note payable.
h. Long-term debt is repaid.
i. Suppliers of inventory are paid in cash.
j. Inventory is purchased on credit.
k. Cash is invested in a GIC that matures in 45 days.
l. A bank loan is obtained.
m. A lender accepts shares of the borrowing company as repayment for the loan.
n. A supplier refunds money because the merchandise received was damaged.
o. A customer makes a deposit for services that will be provided next year.
p. An insurance policy purchased and paid for last year is expensed this year.