Question

) Identify how each of the following items is shown on the statement of cash flows. Identify each as operating (O), investing (I), financing (F), or non-cash investing and financing (N). Item (O), (I), (F), (N) Cash payment of dividend Cash paid for income tax expense Land received in exchange for issuance of common stock

Item	(O), (I), (F), (N)
Cash payment of dividend
Cash paid for income tax expense
Land received in exchange for issuance of common stock

10) _____________

Answer 1

Solution

Item	(O), (I), (F), (N)
Cash payment of dividend	(F)
Cash paid for income tax expense	(O)
Land received in exchange for issuance of common stock	(N)

Working

Expanded answer

Item	(O), (I), (F), (N)
Cash payment of dividend	(F)	Financing
Cash paid for income tax expense	(O)	Operating
Land received in exchange for issuance of common stock	(N)	Non-cash investing and financing

Cash paid to stockholder in form of dividend is a financing activity whereas all payments for operating expenses are operating cash flows, Income tax payment is also considered as an operating cash outflow.