Following are classications for items that may appear on a statement of cash ows prepared on an indirect basis (1) Cash inow from operating activities (2) Cash outow from operating activities (3) Cash inow from investing activities (4) Cash outow from investing activities (5) Cash inow from nancing...

a Repurchase of common stock 6 b Principal payment on longterm notes payable 6 c Cash paid for taxes ...

Following are classications for items that may appear on a statement of cash ows prepared on an

Question:

Following are classiﬁcations for items that may appear on a statement of cash ﬂows prepared on an indirect basis:
(1) Cash inﬂow from operating activities
(2) Cash outﬂow from operating activities
(3) Cash inﬂow from investing activities
(4) Cash outﬂow from investing activities
(5) Cash inﬂow from ﬁnancing activities
(6) Cash outﬂow from ﬁnancing activities
(7) Positive noncash adjustment to net income
(8) Negative noncash adjustment to net income
(9) Does not appear on the statement of cash ﬂows prepared on an indirect basis
Required:
Determine how each of the following items would be shown using the classiﬁcations.
(a) Repurchase of Principal payment on long-term notes payable
(c) Cash paid for taxes
(d) Interest received
(e) Refund of income taxes
(f) Purchase of property and equipment
(g) Cash paid to employees
(h) Increase in Proceeds from issuing long-term note payable
(j) Principal payments under capital lease obligations
(k) Increase in Proceeds from issuing Depreciation expense
(n) Payment of dividends on preferred stock
(o) Principal payments on mortgages
p) Gain on sale of equipment
(q) Decrease in prepaid insurance
(r) Decrease in wages payable
(s) Cash paid to suppliers for inventory
(t) Loans to corporate ofﬁcers
(u) Issuance of treasury stock for cash
(v) Cash received from customers
(w) Declaration of a stock Issuance of for land
(y) Proceeds from the sale of property, plant, and equipment
(z) Declaration of a 2-for-1 stock split
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