Indicate whether each item affects the Operating Activities (O), Investing Activ

Question

Indicate whether each item affects the Operating Activities (O), Investing Activities (1), or Financing Activities (F) section of the cash flow statement: Cash paid to supplier for inventories Cash collected from customers Proceeds from sale of property and building Proceeds from issuance of stock Purchase of treasury stock Purchase of stock in another company (marketable securities) Proceeds from bank line-of-credit. Payment of principal on long-term debt. Payment of interest on long-term debt Payment of cash dividends (to own stockholders) Receipt of cash dividends (from another company) 12

Explanation / Answer

Cash paid to supplier for invenotories O cash collected from customers O proceeds from sale of property and building I proceeds from issuance of stock F purchase of treasury stock F purchase of stock in another company I proceeds from bank line of credit F payment of principal on long term debt F payment of interest on long term debt O payment of cash dividend F Receipt of cash dividend I

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