For each of the following transactions, identify the appropriate section of the statement of cash flows (OA,

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For each of the following transactions, identify the appropriate section of the statement of cash flows (OA, Operating; IA, Investing; FA, Financing; and NC, Noncash). Use the direct method.

_____ a. Receive payments on account from customers.
_____ b. Sale of equipment.
_____ c. Sale of stock or bond investments.
_____ d. Purchase and reissuance of treasury stock.
_____ e. Paid insurance expense.
_____ f. Issue stock in exchange for equipment.

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Sure heres how each of the transactions would be classified in the statement of cash flows using the direct method a Receive payments on account from customers Classification Operating Activities OA b S ale of equipment Classification Investing Activities IA c Sale of stock or bond investments Classification Investing Activities IA d Purchase and reissuance of treasury stock Classification Financing Activities FA e Paid insurance expense Classification Operating Activities OA f Issue stock in exchange for equipment Classification Noncash Investing and Financing Activities NC Please note that NC stands for Noncash activities which means that while theres a significant transaction occurring its not affecting cash directly For example issuing stock in exchange for equipment is a significant transaction but it doesnt involve cash flow ...View the full answer

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