Statement of Cash Flows
You are provided with the following transactions that took
place during a recent fiscal year.
Transaction Where Reported on Statement Cash Inflow,
Outflow, or No Effect?
(a) Recorded depreciation expense on the plant assets.
(b) Recorded and paid interest expense.
(c) Recorded cash proceeds from a sale of plant assets.
(d) Acquired land by issuing common stock.
(e) Paid a cash dividend to preferred stockholders.
(f) Distributed a stock dividend to common stockholders.
(g) Recorded cash sales.
(h) Recorded sales on account.
(i) Purchased inventory for cash.
(j) Purchased inventory on account.
Hint:
Distinguish among operating, investing, and financing
activities.
Instructions
Complete the table indicating whether each item (1) should
be reported as an operating (O) activity, investing (I) activity, financing (F)
activity, or as a noncash (NC) transaction reported in a separate schedule, and
(2) represents a cash inflow or cash outflow or has no cash flow effect. Assume
use of the indirect approach.
