CHAPTER 21 (4.)

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.

Transactions 1. Sale of common stock 2. Sale of land 3. Purchase of treasury stock 4. Merchandise sales 5. Issuance of a long-term note payable 6. Purchase of merchandise 7. Repayment of note payable 8. Employee salaries 9. Sale of equipment at a gain 10. Issuance of bonds 11. Acquisition of bonds of another corporation 12. Payment of semiannual interest on bonds payable 13. Payment of a cash dividend 14. Purchase of a building 15. Collection of nontrade note receivable (principal amount) 16. Loan to another firm 17. Retirement of common stock 18. Income taxes 19. Issuance of a short-term note payable 20. Sale of a copyright