Question

ndicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: O = operating activities, I = investing activities, and

F = financing activities If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. ____

(a) Declared a dividend to be paid early next year. ____

(b) Recorded depreciation expense for the current year. ____

(c) At year-end, paid rent in advance for the next six months. ____

(d) Issued capital stock for cash; management plans to use this cash to invest in marketable securities. ____

(e) Sold a parcel of unused land at a loss. ____

(f) Collected principal amount due on a note receivable. ____

(g) Used the cash received in d, above, to purchase marketable securities. ____

(h) Collected interest due on note receivable described in f, above. ____

(i) Made an adjusting entry to accrue interest payable at year-end. ____

(j) Collected account receivable from a customer who made a large credit purchase in a prior period.

Answer 1