An analysis of comparative balance sheets, the current year\'s income statement,
ID: 2355761 • Letter: A
Question
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Conard Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity. (a) Payment of interest on notes payable. (b) Exchange of land for patent. (c) Sale of building at book value. (d) Payment of dividends. (e) Depreciation. (f) Receipt of dividends on investment in stock. (g) Receipt of interest on notes receivable. (h) Issuance of capital stock. (i) Amortization of patent. (j) Issuance of bonds for land. (k) Purchase of land. (l) Conversion of bonds into common stock. (m) Loss on sale of land. (n) Retirement of bonds.Explanation / Answer
Operating - most daily transactions' Investing - buying and selling assets Financing - stocks, bonds, dividends A-D i like your answers E. operating - non cash expenses are operating Fg ok H - financing I - operating, non cash expense J.non cash since there was no cash KL ok M - the cash from the sale is investing but the loss is added to operating activities N - financing