Classification of Transactions [LO1]

Below are several transactions that took place in Mohawk Company last year:

a. Bonds were retired by paying the principal amount due.

b. Interest was paid to a lender.

c. Income taxes were paid to the government.

d. A long-term loan was made to a supplier.

e. Cash dividends were declared and paid.

f. Common stock was sold for cash to investors.

g. Equipment was sold for cash.

h. Paid wages to employees.

i. Collected cash from customers.

j. Paid cash to repurchase its own stock.

k. Bought equipment for cash.

l. Paid suppliers for inventory purchases.

Required:

Prepare an answer sheet with the following headings:

Activity Transaction Operating Investing Financing Cash Infl ow Cash Outfl ow a.
b.
Etc.

Enter the transactions above on your answer sheet and indicate how each of them would be classified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place on X in the Cash Inflow or Cash Outflow column.