Question: Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the stocks and bonds of
Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the stocks and bonds of other companies are classified as long-term investments.)
II = Inflow from investing activities
OI = Outflow from investing activities
IF = Inflow from financing activities
OF = Outflow from financing activities
CE = Classified as a cash equivalent and included with cash for purposes of preparing the statement of cash flows
______ 1. Purchased a six-month certificate of deposit
______ 2. Purchased a 60-day Treasury bill
______ 3. Issued 1,000 shares of common stock
______ 4. Purchased 1,000 shares of stock in another company
______ 5. Purchased 1,000 shares of its own stock to be held in the treasury
______ 6. Invested $1,000 in a money market fund
______ 7. Sold 500 shares of stock of another company
______ 8. Purchased 20-year bonds of another company
______ 9. Issued 30-year bonds
______ 10. Repaid a six-month bank loan
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