Question

Identify each of Knox​ Industries' transactions listed below as operating​ (O), investing​ (I), financing​ (F), noncash investing and financing​ (NIF), or a transaction that is not reported on the statement of cash flows​ Paste from Word(NA). Also indicate whether the transaction increases​ (+) or decreases ​(dash–​) cash. The indirect method is used for operating activities.

a. Issuance of common stock for cash

b. Purchase of new forklift with cash

c. Purchase of equipment by issuing note payable

d. Depreciation of building e. Decrease in raw materials inventory

f. Payment of cash dividend

g. Inccrease in prepaid rent expense

h. Purchase of treasury stock

i. Cash sale of land (no gain or loss)

j. Sale of long-term investment (no gain or loss)

k. Increase in salaries payable

l. Amortization of patent

m. Purchase building with cash

n. Decrease in accrued taxes payable

o. Gain on sale of equipment

p. Repayment of long-term debt

Answer 1

Classify transaction :

No.	Transaction	activity in statement of cash flow	Increase/decrease
a	Issuance of common stock for cash	Financing activity	Increase
b	Purchase of new forklift with cash	Investing activity	Decrease
c	Purchase of equipment by issuing note payable	NA	NA
d	Depreciation of building	Operating activity	Increase
e	Decrease in raw materials inventory	Operating activity	Increase
f	Payment of cash dividend	Financing activity	Decrease
g	Inccrease in prepaid rent expense	Operating activity	Decrease
h	Purchase of treasury stock	Financing activity	Decrease
i	Cash sale of land (no gain or loss)	Investing activity	Increase
j	Sale of long-term investment (no gain or loss)	Investing activity	increase
k	Increase in salaries payable	Operating activity	Increase
l	Amortization of patent	Operating activity	Increase
m	Purchase building with cash	Investing activity	Decrease
n	Decrease in accrued taxes payable	Operating activity	Decrease
o	Gain on sale of equipment	Operating activity	Decrease
p	Repayment of long-term debt	Financing activity	Decrease