You are provided with the following transactions that took place during a recent fiscal year.

Cash Inflow,

Where Reported

Outflow, or

Transaction

on Statement

No Effect?

(a) Recorded depreciation expense on the

plant assets.

(b) Incurred a loss on disposal of plant assets.

(c) Acquired a building by paying cash.

(d) Made principal repayments on a

mortgage.

(e) Issued common stock.

(f) Purchased shares of another company

to be held as a long term equity

investment.

(g) Paid dividends to common stockholders.

(h) Sold inventory on credit. The company

uses a perpetual inventory system.

(i) Purchased inventory on credit.

(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.