Classify each cash transaction for the statement of cash flows as an operating, investing, or financing activity.
1. William makes a contribution of $75,000 from his personal funds to start the Cookie
Dough & More Ice Cream Co. and received common stock in exchange.
2. The company purchases a building and some equipment for $45,000 in cash.
3. The company purchases $5,500 worth of advertising time on a local television station for cash.
4. The company pays electricity and insurance expenses of $1,500 for the month.
5. The company hires several people to help make ice cream at a cost of $350 for the month and pays them in cash.
6. The National Bank pays $2,500 for ice cream and catering services for its grand opening.

  • CreatedSeptember 01, 2014
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