Brief Exercise 17-01

Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used.

(a)		Issued bonds for $200,000 cash.		Cash Outflow from Financing ActivityCash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow From Investing Activity
(b)		Purchased equipment for $150,000 cash.		Cash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Outflow from Financing ActivityCash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow From Investing Activity
(c)		Sold land costing $20,000 for $20,000 cash.		Cash Outflow from Financing ActivityCash Inflow from Operating ActivityCash Inflow from Financing ActivityCash Inflow From Investing ActivityCash Outflow from Operating ActivityCash Outflow from Investing Activity
(d)		Declared and paid a $50,000 cash dividend.		Cash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow From Investing ActivityCash Outflow from Financing Activity