Classifying transactions on the statement of cash flows—indirect method Consider the following transactions:
|
a. Cash |
72,000 |
|
g. Land |
22,000 |
|
|
Common stock |
|
72,000 |
Cash |
|
22,000 |
|
b. Treasury stock |
16,500 |
|
h. Cash |
9,600 |
|
|
Cash |
|
16,500 |
Equipment |
|
9,600 |
|
c. Cash |
88,000 |
|
i. Bonds payable |
51,000 |
|
|
Sales revenue |
|
88,000 |
Cash |
|
51,000 |
|
d. Land |
103,000 |
|
j. Building |
137,000 |
|
|
Cash |
|
103,000 |
Note payable, long term |
|
137,000 |
|
e. Depreciation expense |
6,800 |
|
k. Loss on disposal of equipment |
1,800 |
|
|
Accumulated depreciation |
|
6,800 |
Equipment, net |
|
1,800 |
|
f. Dividends payable |
19,500 |
|
|
|
|
|
Cash |
|
19,500 |
|
|
|
Requirement
1. Indicate whether each transaction would result in an operating activity, an investing activity, or a financing activity for an indirect method statement of cash flows and the accompanying schedule of noncash investing and financing activities.