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    Statement of cash flow

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    For each of the following activities, identify where the activity would be reported on the statement of cash flows.

    O -Operating
    I -Investing
    F -Financing

    1. Change in accounts receivable
    2. Acquisition of fixed assets
    3. Change in short-term borrowing
    4. Change in inventories
    5. Change in long-term borrowing
    6. Purchase of municipal bonds with the intention of holding the bonds to maturity
    7. Purchase of supplies inventory
    8. Issue of capital stock
    9. Change in trade accounts payable
    10. Payment of interest expense

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    Solution Preview

    Please see the response to your posting as below:

    O -Operating
    I -Investing
    F -Financing

    1. Change in accounts ...

    Solution Summary

    The solution shows classification of the activities into Operating, Investing or Financing activity.