Patel Company reported the following items in its statement of cash flows presented using the indirect method.

Question:

Patel Company reported the following items in its statement of cash flows presented using the indirect method.
a. Sold equipment for cash
b. Issuance of common stock
c. Cash paid for interest
d. Repayment of principal on long-term debt
e. Loss on sale of equipment.
f. Receipt of cash on investment

Required:
Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, or a cash flow from financing activities.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...