The following transactions and events occurred during the year. Assuming that th

Question

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column(s). (More than one column may be used.) Statement of Cash Flows Noncash &Not Reported Operating Investing Financing Financing on Statement Activities Activities Activities Activities a. Declared and paid a cash dividend b. Recorded depreciation expense c. Paid cash to settle long-term note payable d. Prepaid expenses increased in the year e. Accounts receivable decreased in the year f. Purchased land by issuing common stock g. Inventory increased in the year h. Sold equipment for cash, yielding a loss i. Accounts payable decreased in the year Income taxes payable increased in the year

Explanation / Answer

Identify :

Statement of cash flows Non cash investing & Not reported on Operating activities Investing activities Financing activities Financing activities Statement or in notes a Declared and paid a Cash dividend X b Record depreciation expense X c Paid cash to settle long term notes payable X d Prepaid expenses increased in the year X e Account receivable decrease in the year X f Purchase land by issuing common Stock X g Inventory increased in the year X h Sold equipment for cash yielding a loss X X i Account payable decreased in the year X j Income tax payable increased in the year X

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