Identify each expense or revenue as a cash flow from operating activities (O), a
ID: 2745867 • Letter: I
Question
Identify each expense or revenue as a cash flow from operating activities (O), a cash flow from investment activities (I), or a cash flow from financing activities (F). 1. Administrative expenses 2. Rent payment 3. Interest on a note payable 4. Sale of equipment 5. Dividend payment 6. Stock repurchase 7. Sale of finished goods 8. Labor expense 9. Sale of a bond issue 10. Repayment of a long-term debt 11. Selling expenses 12. Depreciation expense 13. Sale of common stock 14. Purchase of fixed assets
Explanation / Answer
1) Administrative expenses Operating activity (O) 2) Rent payment Operating activity (O) 3) Interest on notes payable Operating activity (O) 4) Sale of equipment Investing activity (I) 5) Dividend payment Financing activity (F) 6) Stock repurchase Financing activity (F) 7) Sale of fininshed goods Operating activity (O) 8) Labor expenses Operating activity (O) 9) Sale of bond issue Financing activity (F) 10) Repayment of a longterm debt Financing activity (F) 11) Selling expenses Operating activity (O) 12) Depriciation expenses Operating activity (O) 13) Sale of common stock Financing activity (F) 14) Purchase of fixed asssets Investing activity (I)