Stanfield Inc. reported the following items in its statement of cash flows presented using the indirect method.

Question:

a. Purchased equipment for cash

b. Depreciation expense

c. Declared and paid a cash dividend to stockholders

d. Decrease in inventory

e. Issued long-term debt

f. Sold a building for cash

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...