You are provided with the following transactions that took place during a recent fiscal year.
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Cash Inflow, |
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Where Reported |
Outflow, or |
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Transaction |
on Statement |
No Effect? |
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(a) Recorded depreciation expense on the |
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plant assets. |
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(b) Incurred a loss on disposal of plant assets. |
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(c) Acquired a building by paying cash. |
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(d) Made principal repayments on a |
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mortgage. |
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(e) Issued common stock. |
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(f) Purchased shares of another company |
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to be held as a long term equity |
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investment. |
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(g) Paid dividends to common stockholders. |
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(h) Sold inventory on credit. The company |
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uses a perpetual inventory system. |
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(i) Purchased inventory on credit. |
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(j) Paid wages to employees. |
Instructions
Complete the table indicating whether each item (1) should be reported as an operating (O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction reported in a separate schedule; and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.