Learning which items belong in each cash flow statement category
Learning which items belong in each cash flow statement category is an important first step in understanding their meaning. Use a letter to mark each item in the following list as a cash flow from Operating, Investing, or Financing activities. Put parentheses around the letter if it is a cash outflow and use no parentheses if it’s an inflow.
_______ 1. Cash paid for dividends
_______ 2. Cash collected from customers
_______ 3 Cash received when signing a note
_______ 4. Cash paid to employees
_______ 5. Cash paid to purchase equipment
_______ 6. Cash received from issuing stock
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