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    Ghc318's Avatar
    Ghc318 Posts: 13, Reputation: 1
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    #1

    Feb 6, 2010, 01:09 PM
    Statement of Cash flows Classifications
    Pension expense exceeds amount funded- Operating add to Net Income
    Redemption of Bonds Payable- Financing
    Sale of Building at book Value- Investing
    Depreciation- Operating add to Net Income
    Exchange equipment for Furniture- non cash activity
    Issuance of Capitol Stock- Financing
    Amitorization of Intangible Assets- Operating add to Net Income
    Purchase of Treasury Stock- Financing
    Issuance of bonds for Land- non cash activity
    Payment of Dividends- Financing
    Increase in interest recievable on notes recievable-Operating subtract from Net Income
    purchase of Equipment-Investing

    There are a few I know I'm having problems with but I came up with these classifications for these items using the indirect method.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 6, 2010, 07:08 PM

    These are all correct, except I don't know about the pension thing. Pensions are a more advanced topic so I don't understand the accounting behind them. If I don't know the accounting behind it, a little difficult for me to know where it goes.

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