The Sections of the Statement of Cash Flows Are Listed

question 53

Essay

The sections of the statement of cash flows are listed below:
Sections of Statement of Cash Flows
O = Operating activities
I = Investing activities
F = Financing activities
Required:
For each of the following items,identify the section of the statement of cash flows you would find the item.Assume the direct method is used.
_____ 1.Paid taxes of $15,000.
_____ 2.Borrowed $35,000 from the bank on a long-term note payable.
_____ 3.Collected $690,000 from customers.
_____ 4.Received $40,000 in dividend income.
_____ 5.Paid $12,000 to suppliers for inventory.
_____ 6.Issued common stock for $170,000 cash.
_____ 7.Purchased $120,000 in long-term securities for cash.
_____ 8.Paid $18,000 dividend on common stock.
_____ 9.Purchased land for $345,000 cash.
_____ 10.Sold long-term securities for cash.No gain or loss on sale.
_____ 11.Paid $210,000 on long-term debt.
_____ 12.Received $31,000 cash on sale of equipment.No gain or loss on sale.

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Definitions:

Liabilities

A person’s debts or amount that is owed.

Assets

A person’s property or what is owned.

Entertainment Budget

An allocation of funds set aside specifically for activities or purchases meant for enjoyment or leisure.

Pie Chart

A pie chart is a graphic display in the form of a circle divided into pie-shaped sectors that are used to present data in percentages.