Each of the items below must be considered in preparing a statement of cash flow

Question

Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2017. For each item, state how it should be shown in the statement of cash flows for 2017 and the indirect method is used.

(a) Issued bonds for $200,000 cash.

Cash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow from Operating ActivityCash Outflow from Operating ActivityCash Inflow From Investing ActivityCash Outflow from Financing Activity

(b) Purchased equipment for $150,000 cash.

Cash Outflow from Operating ActivityCash Outflow from Investing ActivityCash Outflow from Financing ActivityCash Inflow From Investing ActivityCash Inflow from Financing ActivityCash Inflow from Operating Activity

(c) Sold land costing $20,000 for $20,000 cash.

Cash Inflow From Investing ActivityCash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Outflow from Investing ActivityCash Inflow from Financing ActivityCash Outflow from Financing Activity

(d) Declared and paid a $50,000 cash dividend.

Explanation / Answer

a. Cash inflow from financing activity.

b. Cash outflow from investing activity.

c. Cash inflow from investing activity.

d. Cash outflow from financing activity.

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