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Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash
Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows.
Cash Flow Classification...using the capital letter only:
- O...Operating Activity
- I...Investing Activity
- F...Financing Activity
- OI...Operating and Investing Activity
- N...Noncash Transaction
Effect on Cash Flows...using the capital letter only:
- I...Increase
- D...Decrease
- N...No Effect
| Transaction | Cash Flow Classification | Effect on Cash Flows |
| Paid a cash dividend. | ||
| Decreased accounts receivable. | ||
| Increased inventory. | ||
| Retired long-term debt with cash. | ||
| Sold long-term securities at a loss. | ||
| Issued stock for equipment. | ||
| Decreased prepaid insurance. | ||
| Purchased treasury stock with cash. | ||
| Retired a fully depreciated truck (no gain or loss). | ||
| Transferred cash to money market account. |
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