14 For each of the following items indicate with the letter

14. For each of the following items, indicate with the letter X whether the transaction would appear in the operating, investing, or financing activities section of the statement of cash flows, or is not reported in any one of these three categories. Assume the indirect method is used for reporting. (6 pts)

Transaction

Activity

Operating

Investing

Financing

None

1.

Revenue minus expenses from operations (i.e., net income)

2.

Collection of cash dividend.

3.

Payment of a cash dividend previously declared.

4.

Purchase of land in exchange for a long-term note payable.

5.

Issuance of common stock for cash.

6.

Cash settlement of a short-term note payable (principal only).

7.

Sale of a productive asset for cash.

8.

Purchase of a patent.

9.

Sale of a short-term marketable security for cash.

10.

Increase in accounts receivable.

11.

Issuance of a stock dividend.

Transaction	Activity
Operating	Investing	Financing	None
1.	Revenue minus expenses from operations (i.e., net income)
2.	Collection of cash dividend.
3.	Payment of a cash dividend previously declared.
4.	Purchase of land in exchange for a long-term note payable.
5.	Issuance of common stock for cash.
6.	Cash settlement of a short-term note payable (principal only).
7.	Sale of a productive asset for cash.
8.	Purchase of a patent.
9.	Sale of a short-term marketable security for cash.
10.	Increase in accounts receivable.
11.	Issuance of a stock dividend.

Solution

Transaction

Activity

Operating

Investing

Financing

None

1.

Revenue minus expenses from operations (i.e., net income)

2.

Collection of cash dividend.

3.

Payment of a cash dividend previously declared.

4.

Purchase of land in exchange for a long-term note payable.

5.

Issuance of common stock for cash.

6.

Cash settlement of a short-term note payable (principal only).

7.

Sale of a productive asset for cash.

8.

Purchase of a patent.

9.

Sale of a short-term marketable security for cash.

10.

Increase in accounts receivable.

11.

Issuance of a stock dividend.

Transaction	Activity
Operating	Investing	Financing	None
1.	Revenue minus expenses from operations (i.e., net income)	X
2.	Collection of cash dividend.	X
3.	Payment of a cash dividend previously declared.			X
4.	Purchase of land in exchange for a long-term note payable.				X
5.	Issuance of common stock for cash.			X
6.	Cash settlement of a short-term note payable (principal only).			X
7.	Sale of a productive asset for cash.		X
8.	Purchase of a patent.		X
9.	Sale of a short-term marketable security for cash.		X
10.	Increase in accounts receivable.	X
11.	Issuance of a stock dividend.				X