Ask Experts Questions for FREE Help !
Ask
    slh6582's Avatar
    slh6582 Posts: 22, Reputation: 1
    New Member
    		  
    #1

    Jul 17, 2007, 10:05 AM
    Statement of Cash Flows
    Classify the following cash flows as operating, investing, or financing activities:

    1. Sold long-term investments for cash.
    2. Received cash payments from customers.
    3. Paid cash for wages and salaries.
    4. Purchased inventories for cash. .
    5. Paid cash dividends.
    6. Issued common stock for cash.
    7. Received cash interest on a note.
    8. Paid cash interest on outstanding bonds.
    9. Received cash from sale of land at a loss
    10. Paid cash for property taxes on building.

    I became a little confused with some of these so any help is much appreciated. Here is what I got so far. Let me know what numbers are wrong please.

    1. Investing
    2.. Operating
    3. Operating
    4. Operating
    5. Financing
    6. Financing
    7. Investing
    8. Operating
    9. Investing
    10. Operating
    KongTheKonqueror's Avatar
    KongTheKonqueror Posts: 75, Reputation: 13
    Junior Member
    		  
    #2

    Jul 17, 2007, 09:35 PM
    They all look good except for #7. It should be operating. The interest received would be operating income. It would only fall under investing when the note is is issued or when principle is paid.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Statement of Cash-flows [ 1 Answers ]

The Indirect Method Millennium Technologies Income statement for the year ended December 31 2002. Revenue: Net sales………………………… $3,200,000 Interest revenue………………. 40,000 Gain on sales of marketable securities….. ...

Statement of Cash Flows [ 1 Answers ]

Question: A company obtained a new building by issuing a combination of common stock and bonds payable. Regarding the statement of cash flows, how would this transaction be reported? a. On a separate schedule accompanying the statement of cash flows b. On a statement of cash flows as both an...

Which is not a purpose of the Statement od Cash Flows [ 1 Answers ]

Questions is: Which of the following is not one of purposes of the statement of cash flows? a. To provide information concerning the business reasons as to what caused the changes in the company's cash and cash equivalents during the accounting period in question? b. To provide information about...

Accounting statement of cash flows [ 1 Answers ]

Which of the following does not represent an outflow of cash and there fore would not be reported on the statement of cash flows as a use of cash? a. Purchase of non current assets b. purchase of treasury stock c. discarding an asset that had been fully depreciated d. Payment of cash dividends

View more questions Search