Question
Each of the following items listed below indicate how it would be reported on the statement of cash flows, using the following legend (assume the
Each of the following items listed below indicate how it would be reported on the statement of cash flows, using the following legend (assume the company uses the direct method for operating activities
A Cash provided by operating activites
B cash used in operating activites
C Cash provided by investing Activities
D Cash used by investing activities
E Cash provided by financing Activities
F cash used by financing activities
G does not appear on the statement of cash flows
___ 1. Purchase acme co common stock (purchase stock of own company) for $100,000
___ 2. Sold truck with book value of $7,000 for $3,000
___ 3. Declared cash dividends on common stock of $15,000 to be paid next year
___ 4. Redemption of company bonds for $95,000: the bonds had a carrying and face value of $100,000. (we retired-paid of debt)
___ 5. Recorded $49,000 of amortization for an intangible asset
___ 6. Purchased a new truck for $29,000: installment purchase, no cash down payment
___ 7. increase in accounts receivable from beginning to end of year of $12,000
___ 8. Collected $26,000 in cash from customer's payments on account receivables. Of that amount $20,000 related to sales made in the previous year
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