FINANCING (F) ACC 215 In Class Exercise Baker Statement of Cash Flows OPERATING INVESTING (0) (0) Identify the following as Financing Activities (F) or Investing Activities (1): 1. Purchase of Equipment 2. Purchase of Treasury Stock 3. Reduction of Long-Term Debt 4. Sale of Building 5. Resale of Treasury Stock 6. Increase in Short-Term Debt 7. Issuance of Common Stock 8. Purchase of Land 9. Purchase of Common Stock of another firm 10. Payment of Cash Dividends 11. Gain on Sale of Land 12. Repayment of Debt Principal Indicate which of the following are Operating Activities (0) (Current Assets and Current Liabilities) and which are Investing Activities (1) or Financing Activities (F). Recall that Operating Activities are included in the adjustment of Net Income to Cash Flow from Operating Activities. 13. Accounts Payable 14. Accounts Receivable 15. Notes Payable (to bank) F 16. Marketable Securities (stock, bonds, etc.) 17. Accrued Expenses 18. Inventory 19. Prepaid Expenses 20. Income Taxes Payable 21. Interest Payable Indicate whether each of the following items would result in Net Cash Flow from Operating Activities being Higher (H) or Lower (L) than Net Income. OPERATING HIGHER LOWER (0) (H) (L) 22. Decrease in Accounts Payable 23. Depreciation Expense 24. Decrease in Inventory 25. Gain on Sale of Assets 26. Increase in Accounts Receivable 27. Increase in Prepaid Expenses 28. Increase in Deferred Revenue 29. Decrease in Interest Receivable