Question: Following are classi cations for items that may appear on a

Following are classifications for items that may appear on a statement of cash flows prepared on a direct basis:
(1) Cash inflow from operating activities
(2) Cash outflow from operating activities
(3) Cash inflow from investing activities
(4) Cash outflow from investing activities
(5) Cash inflow from financing activities
(6) Cash outflow from financing activities
(7) Does not appear on the statement of cash flows prepared on a direct basis
Determine how each of the following items would be shown using the classifications.
(a) Repurchase of common stock
(b) Principal payment on long-term notes payable
(c) Cash paid for taxes
(d) Interest received
(e) Refund of income taxes
(f) Purchase of property and equipment
(g) Cash paid to employees
(h) Increase in accounts payable
(i) Proceeds from issuing long-term note payable
(j) Principal payments under capital lease obligations
(k) Increase in accounts receivable
(l) Proceeds from issuing common stock
(m) Depreciation expense
(n) Payment of dividends on preferred stock
(o) Principal payments on mortgages
p) Gain on sale of equipment
(q) Decrease in prepaid insurance
(r) Decrease in wages payable
(s) Cash paid to suppliers for inventory
(t) Loans to corporate officers
(u) Issuance of treasury stock for cash
(v) Cash received from customers
(w) Declaration of a stock dividend
(x) Issuance of common stock for land
(y) Proceeds from the sale of property, plant, and equipment
(z) Declaration of a 2-for-1 stock split

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  • CreatedMarch 27, 2015
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