Which of the following will cause a decrease in cash in the financing activities section of the statement of cash flows?

Payment of cash dividend

Issuance of treasury stock

Receipt of cash dividend

Stock split

Payment of interest on notes payable

Poof Co. had the following transaction: Purchase of land for cash, $90,000; sale of equipment for cash $30,000; issuance of bonds for cash, $100,000; payment of mortgage for cash, $15,000; issue stock dividends, $40,000; purchase treasury stock; $200,000; receive cash dividends, $15,000; scrapped a company car which had a book value of $5,000. What is the net effect of the investing activities?

Decrease $60,000

Decrease $140,000

Decrease $55,000

Increase $60,000

Increase $55,000

Harrison Co. bought an annual insurance policy in December 2020 which will be used in total in 2021. How will this transaction be shown on the statement of cash flows in 2020?

An increase in cash in the operating activities section

A decrease in cash in the operating activities section

An increase in cash in the investing activities section

A decrease in cash in the investing activities section

Does not appear in the statement of cash flows

Coaters. Inc. bought a building by acquiring a mortgage through the bank. How would this transaction appear in the statement of cash flows?

Operating activity

Investing activity

Financing activity

Noncash investing and financing activity