For each item listed, identify the activity and whether it is an inflow, an outflow or...

For each item listed, identify the activity and whether it is an inflow, an outflow or of a non-cash nature.

Complete the table below.

	Item	Activity	Cash Flow
a	Dividends received
b	Taxation paid
c	Payments to suppliers and employees
d	Interest Paid
e	Purchase of property, plant, and equipment
f	Bonus issue of shares
g	Dividends paid
h	Proceeds on sale of investments
i	Interest received
j	Long-term borrowing
k	Goodwill write-down (impairment)
l	Profit on sale of equipment

For Activity choose 1 option of either:

1: Financing

2: Investing

3: Non-cash

4: Operating

For cash flow choose an option of either:

1: inflow

2: non-cash nature

3: outflow

Solutions

Expert Solution

	Item	Activity	Cash flow
a	Dividends received	Investing	Inflow
b	Taxation paid	Operating	Outflow
c	Payment to supplier and employees	Operating	Outflow
d	Interest paid	Financing	Outflow
e	Purchase of property, Plant and Equipment	Investing	Outflow
f	Bonus issue of shares	Financing	Inflow
g	Dividends paid	Financing	Outflow
h	Proceeds on sale of Investments	Investing	Inflow
i	Interest received	Investing	Inflow
j	Long term borrowing	Financing	Inflow
k	Goodwill written down(impairment)	Non-cash	Non-cash
l	Profit on sale of equipment	Investing	Inflow




Basically, there are three section of financial statement. Operating Profit and changes in working capital
denotes operating activity. Any kind of financing taken from stockholder or borrowers and related payments
towards dividends and interest forms Financing activity. Any kind of Investment whether made in property, plant
and Equipment or short term or long term investment or loans provided and related receipt from such
investment forms Investing activity. All these activities should result in actual cash inflow or cash outflow.
Transaction like depreciation or amortization or writing off or impairment of goodwill are examples of Non-cash
activities of businesses

ekkarill92 answered 1 year ago

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