For each of the following transactions on the statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section, or in the Financing Activities section (F). Assume the use of the direct method in the Operating Activities section.
____ 1. Repayment of long term debt
____ 2. Purchase of Equipment
____ 3. Collection of customer’s account
____ 4. Issuance of common stock
____ 5. Purchase of another company
____ 6. Payment of dividends
____ 7. Payment of income taxes
____ 8. Sale of equipment
For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the direct method (D) or the indirect method (I).
____ 1. Net income
____ 2. Increase in accounts receivable
____ 3. Collection on accounts receivable
____ 4. Payments on accounts payable
____ 5. Decrease in accounts payable
____ 6. Depreciation expense
____ 7. Gain on early retirement of bods
____ 8. Cash sales
For each of the following transactions on the statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section, or in the Financing Activities section (F). Assume the use of the direct method in the Operating Activities section. ____ 1. Repayment of long term debt ____ 2. Purchase of Equipment ____ 3. Collection of customer’s account ____ 4. Issuance of common stock ____ 5. Purchase of another company ____ 6. Payment of dividends ____ 7. Payment of income taxes ____ 8. Sale of equipment For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the direct method (D) or the indirect method (I). ____ 1. Net income ____ 2. Increase in accounts receivable ____ 3. Collection on accounts receivable ____ 4. Payments on accounts payable ____ 5. Decrease in accounts payable ____ 6. Depreciation expense ____ 7. Gain on early retirement of bods ____ 8. Cash sales
Attachments:
Tare 1.docx