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Task 2: Classifying Cash Flows, Indirect Method
The following are line items that could be found in a statement of cash flows:
? Repurchase of common stock
? Interest received
? Refund of income taxes
? Principal payment on long-term notes payable
? Cash paid to suppliers and employees
? Increase in accounts payable
? Purchase of property and equipment
? Proceeds from issuing a long-term note payable
? Cash paid for taxes
? Principal payments under capital lease obligations
? Depreciation expense
? Payment of dividends on preferred stock
? Principal payments on mortgages
? Increase in accounts receivable
? Gain on sale of equipment
? Proceeds from issuing common stock
? Decrease in wages payable
? Declaration of a stock dividend
? Cash paid to suppliers for inventory
? Issuance of treasury stock for cash
? Long-term loans to officers
? Issuance of common stock for land
? Proceeds from the sale of property, plant, and equipment
? Cash received from customers
? Decrease in prepaid insurance
Classify each of the items as one of the following; assuming the operating portion of the statement of cash flows is prepared on an indirect basis.
? Cash inflow from operating activities
? Cash outflow from operating activities
? Cash inflow from investing activities
? Cash outflow from investing activities
? Cash inflow from financing activities
? Cash outflow from financing activities
? Positive adjustment to net income
? Negative adjustment to net income
? Does not appear in the operating portion of the statement of cash flows prepared on an indirect basis
? Non-cash transaction
Submission Requirements:
? Submit your answer in a Microsoft Excel file.
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