M11-23. Classification of Cash Flows

Shake Shack Inc. reports the following items in its 2015 statement of cash flow. For each item, indicate whether it would appear in the operating, investing, or financing section of the statement of cash flows (in $ thousands).

							Activity
a. Proceeds from issuance of Class B common stock					$40		AnswerFinancingInvestingOperating
b. Equity-based compensation					17,792		AnswerFinancingInvestingOperating
c. Inventories					(22)		AnswerFinancingInvestingOperating
d. Purchases of property and equipment					(43,228)		AnswerFinancingInvestingOperating
e. Member distributions (dividends)					(12,345)		AnswerFinancingInvestingOperating
f. Net income					4,123		AnswerFinancingInvestingOperating
g. Payments on revolving credit facility					(4,500)		AnswerFinancingInvestingOperating
h. Purchases of marketable securities					(3,972)		AnswerFinancingInvestingOperating
i. Depreciation expense					20,221		AnswerFinancingInvestingOperating
j. Accounts payable					312		AnswerFinancingInvestingOperating