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    Statement of Cash Flows

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    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.

    Distinguish among operating, investing, and financing activities.

    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.

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    Solution Summary

    The solution explains the classification of the given events in terms of operating, investing and financing cash flow