Question
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code:
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: O = operating activities, I = investing activities, and F = financing activities. Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X.
Paid an account payable for inventory purchased in a prior accounting period.
____On December 28, made a large credit sale; terms, 2/10, n/30.
____Received a dividend from an investment in IBM common stock.
____Paid a dividend to stockholders
____Paid the interest on a note payable to First Bank.
____Paid the principal amount due on the note payable to First Bank.
____Transferred cash from a checking account into a money market fund.
____ Made an adjusting entry to record accrued wages payable at the end of the period.
____Recorded depreciation expense for the current year.
____Purchased plant assets for cash.
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