Cowell Company had the following business activities during 2011: a. Paid cash dividend to shareholders b. Paid

Question:

Cowell Company had the following business activities during 2011:
a. Paid cash to shareholders
b. Paid cash for inventory
c. Purchased equipment for cash
d. Paid interest on long-term debt
e. Acquired land in exchange for Issued for cash
g. Paid salaries to employees
h. Received cash from the sale of merchandise
i. Recorded amortization related to an intangible asset
j. Issued bonds payable in exchange for cash
k. Sold equipment for cash
l. Purchased inventory on account Cowell Company uses the indirect method to prepare its statement of cash flows.

Required:
1. Indicate whether each activity should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity.
2. For each activity that is reported on the statement of cash flows, indicate whether each activity produces a cash inflow, a cash outflow, or has no cash effect.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...