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Question 4 The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed
Question 4
The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as:
1. | Operating activity-add to net income. | |
2. | Operating activity-deduct from net income. | |
3. | Investing activity. | |
4. | Financing activity. | |
5. | Reported as significant noncash activity |
The transactions are as follows.
Transactions | Classifications of Activities | |||
(a) | Issuance of common stock. | |||
(b) | Purchase of land and building. | |||
(c) | Redemption of bonds | |||
(d) | Sale of equipment. | |||
(e) | Depreciation of machinery. | |||
(f) | Amortization of patent. | |||
(g) | Issuance of bonds for plant assets. | |||
(h) | Payment of cash dividends. | |||
(i) | Exchange of furniture for office equipment. | |||
(j) | Purchase of treasury stock. | |||
(k) | Loss on sale of equipment. | |||
(l) | Increase in accounts receivable during the year. | |||
(m) | Decrease in accounts payable during the year. |
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