Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), or a transaction that is not reported on the statement of cash flows (N).
a) ________ Receipt of interest
b) ________ Increase of accounts payable
c)________ Borrowed money from a bank
d) ________ Purchase of building for cash
e) ________ Cash declaration of dividends
f) ________ Sold plant equipment for cash
g) ________ Increase of accounts receivable
h) ________ Payment on principal of a note
54) Identify where each of the following transactions would be shown on the statement of cash flows when it is prepared by the indirect method. Identify each transaction as an operating activity (O), an investing activity (I), a financing activity (F), or transaction that is not reported on the statement of cash flows (N).
a) ________ Paid for fire insurance in advance
b)________ Cash used to purchase new computers
c) ________ Cash used to retire bonds outstanding
d) ________ Amortization expense
e) ________ Cash used to purchase fixed assets
f) ________ Cash proceeds from sale of the company's own shares
g) ________ Bought back own shares
h) ________ Received cash dividends
55) The following information is given for Nevada Times:
Decrease in accounts receivable2,000
Increase in supplies on hand3,000
Sale of common shares10,000
Purchase of equipment5,000
Loan money to a customer4,000
Decrease in accounts payable1,000
The indirect method is used.
Answer the following questions with the information provided above.
a) The cash flow from operating activities is ________________.
b) The cash flow from investing activities is ________________.
c) The cash flow from financing activities is ________________.
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