Question

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method.
1. Purchased computer equipment for cash....a. Inflow from operating activity
2. Issued preferred stock. ............b. Outflow from operating activity
3. Paid employee salaries and wages. ......c. Inflow from investing activity
4. Repaid a long-term bank loan. .......d. Outflow from investing activity
5. Received payments from credit sales. ......e. Inflow from financing activity
6. Issued common stock to acquire
land and a building. ............f. Outflow from financing activity
7. Declared cash dividends. ......g. Noncash investing and financing activity
8. Paid the cash dividends
declared in (g) above.........h. Not reported on statement of cash flows
9. Recorded depreciation for the year.
10. Paid interest on bonds.



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  • CreatedJuly 26, 2013
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