Identify whether each of the following is an operating, investing, or financing

Question

Identify whether each of the following is an operating, investing, or financing cash outflow or inflow or if it is a noncash flow, under GAAP.
a. Purchase marketable equity securities- b. Dividends on marketable equity securities c. Wages to employees d. Depreciation e. Issuance of new stock f. Interest paid g. Goodwill amortization h. Acquisition of company using fair value accounting i. Sale of land j. Tax paid on sale of land k. Cash paid by customers Identify whether each of the following is an operating, investing, or financing cash outflow or inflow or if it is a noncash flow, under GAAP.
a. Purchase marketable equity securities- b. Dividends on marketable equity securities c. Wages to employees d. Depreciation e. Issuance of new stock f. Interest paid g. Goodwill amortization h. Acquisition of company using fair value accounting i. Sale of land j. Tax paid on sale of land k. Cash paid by customers Identify whether each of the following is an operating, investing, or financing cash outflow or inflow or if it is a noncash flow, under GAAP.
a. Purchase marketable equity securities- b. Dividends on marketable equity securities c. Wages to employees d. Depreciation e. Issuance of new stock f. Interest paid g. Goodwill amortization h. Acquisition of company using fair value accounting i. Sale of land j. Tax paid on sale of land k. Cash paid by customers

Explanation / Answer

A. Purchase marketable equity securities- Is a cash outflow treated in investing activity

B. Dividends on marketable equity securities- Is a cash inflow shown under investing activity but excluded in operating activity

C. Wages to employees- Is a cash outflow shown under operating activity

D. Depreciation- Is a cash outflow shown under operating activity

E. Issuance of new stock -Is a cash inflow shown under financing activity.

F. Interest paid- Is a cash outflow, shown under operating and financing activity.

G. Goodwill amortization - Is a cash outflow shown under operating activity.

H. Acquisition of company using fair value accounting- Is a non cash flow activity.

I. Sale of land - Is a cash inflow shown under Investment ativity

J.Tax paid on sale of land - Is a cash outflow shown under financing activity

K. Cash paid by customers- Is a cash inflow, treated in operting activity under working capital changes

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