80.2K

Verified Solution

Link Copied!

17 8 points 00:11:23 Skipped eBook Print The statement of cash flows classifies all cash inflows and outflows into one of the three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not involve cash are reported in the statement as noncash investing and financing activities. Required: For each of the following transactions, select the appropriate classification category. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Purchase of equipment for cash. Payment of employee salaries. Collection of cash from customers. Cash proceeds from notes payable. Purchase of common stock of another corporation for cash. Issuance of common stock for cash. Sale of equipment for cash. Payment of interest on notes payable. Issuance of bonds payable in exchange for land and building. Payment of cash dividends to shareholders. Payment of principal on notes payable. Che

The statement of cash flows classifies all cash inflows and cutflows into one of the three categories: Operating activities, Investing activities, Financing activities. In addition, certain transactions that do not imvolve cash are reported in the statement as noncash investing and financing activities. Required: For esch of the following transactions, select the appropriate classification category

Answer & Explanation Solved by verified expert

See Answer