Exercise 161 Indirect Cash flow classification LO C1 20 prov

Exercise 16-1 Indirect: Cash flow classification LO C1 20 provided by operating activities, indicate where each item would appear on its st atement of cash flows by placing an × in the e ook of Cash Flows on Statement or in Notes h Sold

Solution

Statement of Cash Flows

Noncash investing and financing activities

Not reported on Statement or in Notes

Operating Activities

Investing Activities

Financing Activities

a.

Declared and paid a cash dividend

X

b.

Recorded depreciation expense

X

c.

Paid cash to settle long term note payable

X

d.

Prepaid expenses increased during the year

X

e.

Accounts receivable decreased in the year

X

f.

Purchased land by issuing common stock

X

g.

Inventory increased during the year

X

h.

Sold equipment for cash yielding a loss

X

X

i.

Accounts payable decreased during the year

X

j.

Income taxes payable increased in the year

X

			Statement of Cash Flows	Noncash investing and financing activities	Not reported on Statement or in Notes
		Operating Activities	Investing Activities	Financing Activities
a.	Declared and paid a cash dividend	X
b.	Recorded depreciation expense	X
c.	Paid cash to settle long term note payable	X
d.	Prepaid expenses increased during the year	X
e.	Accounts receivable decreased in the year	X
f.	Purchased land by issuing common stock		X
g.	Inventory increased during the year	X
h.	Sold equipment for cash yielding a loss	X	X
i.	Accounts payable decreased during the year	X
j.	Income taxes payable increased in the year	X