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Classify each of the following transactions as operational, investment or financing. Use the following letters: a. Operational activity b. Investment activity c. Financing activity d.
Classify each of the following transactions as operational, investment or financing. Use the following letters:
a. Operational activity
b. Investment activity
c. Financing activity
d. Not presented in the Statement of Cash Flows or is disclosed in a note.
1. Purchase of treasury stock
2. Purchase of shares issued by another company
3. Sale of bonds payable (bond issuance)
4. Sale of bonds available for sale
5. Sale of bonds for trading
6. Collection of compensation for inventory destroyed by fire.
7. Payment of premium for a life insurance policy, portion corresponding to the expense.
8. Payment of the premium of a life insurance policy, portion corresponding to the cash surrender value of the policy.
9. Purchase of land in exchange for common stock.
10. Purchase of bonds for trading
11. Zero-coupon balance of bonds payable, portion corresponding to accrued interest.
12. Zero-coupon bond payable balance, portion corresponding to the principal amount
13. Rent payment
14. Cash purchase of raw materials for manufacturing.
15. Receipt of dividends from an investment in shares accounted for using the equity method.
16. Payment of property taxes
17. The company purchased land and a building and had to pay delinquent property taxes on the aforementioned assets.
18. Payment for freight on raw materials purchased.
19. Freight payment on manufacturing machinery purchased.
20. Purchase of financial instruments classified as cash equivalents.
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