1. Gehl Co. 2018 transactions are listed below. Willcox uses the indirect method

Question

1. Gehl Co. 2018 transactions are listed below. Willcox uses the indirect method when calculating cash provided by operating activities. Where on the Statement of Cash Flows would the line item appear? Put an x in the correct column(s). (Statement of Cash Flows Indirect Method) Noncash Operating Investing Financing Investing/ Activities Activities ActivitiesFinancin Inventory increased in the year Purchased Land by issuing preferred stock Recorded Depreciation Expense Paid Cash for retirement of Notes Payable Paid Cash for Operating Expenses Salaries Payable increased in the year Sold Equipment for Cash, yielding a gain Purchased long-term investment in Bonds Paid cash for Common Dividends Issued Common Stock for Cash

Explanation / Answer

Classification :

Operating activities Investing activities Financing activities Non cash investing and financing Inventory increased in the year X Purchase Land by issuing common Stock X Recorded depreciation expense X Paid cash for retirement of notes payable X Paid cash for operating expense X Salaries payable increased in the year X Sold equipment for cash , yielding a gain X X Purchase long term investment in bonds X Paid cash for common dividends X Issued common Stock for cash X

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