Instructions: Each of the events below may have an effect on the indirect statem
ID: 2452573 • Letter: I
Question
Instructions: Each of the events below may have an effect on the indirect statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided below. Codes may be used more than once, or not at all.
Codes
A. Investing activity; cash inflow
B. Investing activity; cash outflow
C. Financing activity; cash inflow
D. Financing activity; cash outflow
E. Operating activity; cash inflow
F. Operating activity; cash outflow
G. Noncash investing and financing activity
Events
_____ 1. Issued bonds payable for cash
_____ 2. Paid an account payable
_____ 3. Issued checks for the weekly payroll
_____ 4. Purchased treasury stock for cash
_____ 5. Paid cash for a new car for a traveling salesperson
_____ 6. Declared and paid a cash dividend
_____ 7. Converted bonds payable into common stock
_____ 8. Received interest on a long-term bond investment
_____ 9. Paid cash for 40% interest in another company
_____ 10. Sold a long-term stock investment for cash at book value
Explanation / Answer
Answer:
Events Codes _____ 1. Issued bonds payable for cash C. Financing activity; cash inflow _____ 2. Paid an account payable F. Operating activity; cash outflow _____ 3. Issued checks for the weekly payroll F. Operating activity; cash outflow _____ 4. Purchased treasury stock for cash D. Financing activity; cash outflow _____ 5. Paid cash for a new car for a traveling salesperson B. Investing activity; cash outflow _____ 6. Declared and paid a cash dividend D. Financing activity; cash outflow _____ 7. Converted bonds payable into common stock G. Noncash investing and financing activity _____ 8. Received interest on a long-term bond investment E. Operating activity; cash inflow _____ 9. Paid cash for 40% interest in another company B. Investing activity; cash outflow _____ 10. Sold a long-term stock investment for cash at book value A. Investing activity; cash inflow