Question: Following are classications for items that may appear on a statement of cash ows prepared on a direct basis: (1) Cash inow from operating activities

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
Required:
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

Step by Step Solution

3.35 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Repurchase of common stock 6 b Principal payment on longterm notes payable 6 c Cash paid for taxes ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

430-B-M-A-S-C-F (3242).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!