Complete the table indicating whether each item (1) should bereported as an oper

Question

Complete the table indicating whether each item (1) should bereported as an operating (O) activity, investing (I) activity,financing (F) activity, or as a noncash (NC) transaction reportedin a separate schedule, and (2) represents a cash inflow or cashoutflow or has no cash flow effect. Assume use of the indirectapproach.

Transaction

WhereReported
on Statement

Cash Inflow,Outflow,
or No Effect?

Transaction

WhereReported
on Statement

Cash Inflow,Outflow,
or No Effect?

(a) Recordeddepreciation expense on the plant assets. NCFOI Cash outflowCash inflowNo cash flow effect (b) Recorded and paid interestexpense. FIONC Cash outflow (c) Recorded cashproceeds from a sale of plant assets. FIONC Cash inflow (d) Acquired land by issuing commonstock. FNCIO No cash flow effect (e) Paid a cash dividendto preferred stockholders. F No cash flow effectCash inflowCash outflow (f) Distributed a stock dividend to commonstockholders. IFNCO Cash outflowNo cash flow effectCash inflow (g) Recorded cashsales. FOINC Cash outflowNo cash flow effectCash inflow (h) Recorded sales on account. FIONC No cash flow effect (i) Purchased inventoryfor cash. IFNCO Cash inflowCash outflowNo cash flow effect (j) Purchased inventory on account. NCIFO No cash flow effect

Explanation / Answer

a. No CF effect b. C Outflow c. Cash Inflow d. No CF effect e. Cash Outflow f. Cash Outflow g. Cash Inflow h. Cash outflow i. Cash outflow j. Cash Inflow

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