Cowell Company had the following business activities during 2019:
a. Paid cash dividend to stockholders
b. Paid cash for inventory
c. Purchased equipment for cash
d. Paid interest on long-term debt
e. Acquired land in exchange for common stock
f. Issued common stock 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, cash flow from investing activities, cash flow from financing activities, or 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, cash outflow, or no cash effect?