EXERCISE 14–1 Classifying Transactions [LO1]
Below are certain events that took place at Hazzard, Inc., last year:
a. Paid bills to insurers and utility providers.
b. Purchased equipment with cash.
c. Paid wages and salaries to employees.
d. Paid taxes to the government.
e. Loaned money to another entity.
f. Sold common stock.
g. Paid a cash dividend to stockholders.
h. Paid interest to lenders.
i. Repaid the principal amount of a debt.
j. Paid suppliers for inventory purchases.
k. Borrowed money from a creditor.
l. Paid cash to repurchase its own stock.
m. Collected cash from customers.
Prepare an answer sheet with the following headings:
Enter the cash inflows and outflows above on your answer sheet and indicate how each of them would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column as appropriate.
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