Consider the following cash flows incurred by Leons. Classify each as operating, financing, or investing activities: a.

Question:

Consider the following cash flows incurred by
Leon’s. Classify each as operating, financing, or investing activities:
a. Sale of furniture to customers
b. Cash paid to renovate a store
c. Purchase of new carpeting for stores
d. Sale of old shelving
e. A new bank loan
f. Wages paid to employees
g. Purchase of furniture for sale in a store
h. Payment of a to shareholders
i. Purchase of advertising in newspapers promoting merchandise on sale
j. Refund to a customer who purchased products that were damaged

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...