SCF - Homework

Exercise 1.

Identify whether each of the following items are an operating, investing, or a financing activity.

ItemOperating activityInvesting activityFinancing activity1.Cash paid for interest on bond 2.Cash received from issuance of bonds payable 3.Cash paid for equipment 4.Cash received from sale of available-for-sale-securities 5.Cash dividends received from available-for-sale securities 6.Cash received from sale of building 7.Cash paid to purchase trading securities* 8.Cash collected on account 9.Cash paid for inventory 10.Cash received from sale of treasury stock

*Trading securities are considered almost the equivalent of cash and are not really an investment.