(Classifying transactions for a cash flow statement, LO 3) Lasky and Partners

(Lasky) is a small accounting firm. For each of the following, specify whether the item should be classified as an operating, financing, or investing cash flow, whether the item represents a cash inflow or outflow, and the amount of the transaction. Explain your reasoning.

a. Collected $5,000 from a client for services rendered.

b. Purchased new laptop computers for the accountants for $26,000 cash.

c. Repaid a $50,000 loan from the bank.

d. Depreciation expense for the year was $55,000.

e. Sold some old office furniture for $4,500. The gain on the sale was $1,000.

f. Paid employees $76,000 cash in wages for the period.
g. Admitted a new partner to the firm. The new partner contributed $100,000 in capital to the firm to become a partner.
h. Provided services to a client and the client was billed $8,700. The client is expected to pay in 60 days.