9.1) Given the following cash transactions, classify each as a cash flow from (1

Question

9.1)

Given the following cash transactions, classify each as a cash flow from (1) operating activities, (2) investing activities, or (3) financing activities a. Payment to employees for work done b. Dividends paid to shareholders c. Payment for new equipment d. Payment to supplier for inventory e. Interest payment to the bank related to a loan Classify the following cash flow transactions as an operating activity, an financing activity, or a financing activity. Transaction Classification Payment to employees for work done Dividends paid to shareholders Payment for new equipment Payment to supplier for inventory Interest payment to the bank related to a loan

Explanation / Answer

Payment to employees for work done operating Dividend paid to shareholders Financing payment for new equipment Investing Payment to supplier for inventory Operating Interest payment to bank related to loan Financing

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