Question

Determine whether the following transactions would be included in the operating, investing, or financing section of...

Determine whether the following transactions would be included in the operating, investing, or financing section of the statement of cash flows.

1 -

paid cash to purchase new computer equipment

2 -   

received cash from issuing preferred stock

3 -   

paid employee salaries and wages

4 -

repaid the principal on a long-term bank loan

5 -   

paid the interest on a long-term bank loan

6 -   

declared cash dividends to be paid at a later date

7 -   

paid cash to purchase land

8 -

recorded depreciation expense for the year

a.

operating

b.

investing

c.

financing

d.

non-cash activity

Homework Answers

Answer #1

Answer:-

1 Paid cash to purchase new computer equipment Investing
2 Received cash from issuing preferred stock Financing
3 Paid employee salaries and wages Opreating
4 Repaid the principal on a long-term bank loan Financing
5 Paid the interest on a long-term bank loan Opreating
6 Declared cash dividends to be paid at a later date Non cash activity
7 Paid cash to purchase land Investing
8 Recorded depreciation expense for the year Operating
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