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    Classify Activities as operating, investing, financing

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    Classify each of the following as an operating activity (OA), an investing activity (IA), a financing activity (FA), or a non-cash flow transaction (NT). In addition, for each transaction, state whether it is a cash inflow (CI) or cash outflow (CO). For example, payments to employees would be (OA) and (CO).

    1.Proceeds from issuance of debt.
    2.Payments for taxes.
    3.Purchase of short-term investments.
    4.Collections of dividends.
    5.Payment of long-term debt.
    6.Proceeds from sale of fixed assets (plant and equipment).
    7.Payments to suppliers of goods and services.
    8.Proceeds from sales of short-term investments.
    9.Declaration of a stock split.
    10.Collections from customers.
    11.Payment of cash dividends.
    12.Proceeds from issuance of common or preferred stock.
    13.Payments to employees.
    14.Purchases of fixed assets (plant and equipment).
    15.Collections of interest.

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    https://brainmass.com/business/accounting/classify-activities-as-operating-investing-financing-279995

    Solution Preview

    1.Proceeds from issuance of debt. (FA) (CI)
    2.Payments for taxes. (OA) (CO)
    3.Purchase of short-term investments. (IA) (CO)
    4.Collections of dividends. (IA) (CI)
    5.Payment of ...

    Solution Summary

    The solution classifies all the activities into operating activity (OA), an investing activity (IA), a financing activity (FA), or a non-cash flow transaction (NT). The activities are also classified as a cash inflow (CI) or cash outflow (CO).

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