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) Depreciation expense
e) Cash used to purchase fixed assets
f) Cash proceeds from sale of the company's own stock
g) Bought back own stock
h) Received cash dividends

Question

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) ________ Depreciation expense
e) ________ Cash used to purchase fixed assets
f) ________ Cash proceeds from sale of the company's own stock
g) ________ Bought back own stock
h) ________ Received cash dividends

jaklin dahbar · Accepted Answer

Final Answer : a) O, b) I, c) F, d) O, e) I, f) F, g) F, h) O

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