Cash Flows Classification

Effect on Cash

 
 

Operating
  Activity

Investing
  Activity

Financing
  Activity

Increase

Decrease

Noncash
  Transactions

Data

           

a. Net   income

           

b. Paid   cash dividend

           

c.   Increase in receivables

           

d.   Retirement of debt— paying cash

           

e.   Purchase of treasury stock

           

f.   Purchase of equipment

           

g. Sale   of equipment

           

h.   Decrease in inventory

           

i.   Acquisition of land, using common stock

           

j.   Retired bonds, using common stock

           

k.   Decrease in accounts payable

           

Required Place an X in the appropriate columns for each of the situations.