Identify Each of the Following Items as Operating O, Investing

question 68

Essay

Identify each of the following items as operating O, investing I, or financing F activities on the statement of cash flowsassuming the indirect method. If an item is not on the statement, please mark it as none of these N. If the item is an inflow, please indicate by a +,
e.g. O+, I+ or F+. If the item is an outflow, please indicate by brackets,
e.g., <O> for operating outflow, <I> for investing outflow, and <F> for financing outflow:
a Paid an account payable for inventory purchased in the previous accounting period.
b Amortization of debt issuance costs
c Paid a dividend to stockholders.
d Paid the interest on a note payable to National Street Bank.
e Paid the principal amount due on the note payable to National Street Bank.
f Transferred cash from a checking account into a money market fund.
g Purchased equipment for cash.

---

Definitions:

The Grapevine

An informal, unofficial, and personal communication network found within or across organizations, which is faster and more versatile than formal channels.

Informal Channel

A method of communication that occurs outside official or formal organizational structures, often relying on personal networks or social media.

Communication

The process of exchanging information, thoughts, messages, or speeches, either verbally or non-verbally, between two or more parties.

Coercive Power

A form of power that relies on the ability to compel or force someone to comply through threats or punishment.