Classify the Following Activities According to the Appropriate Section of the Statement

question 102

Short Answer

Classify the following activities according to the appropriate section of the statement of cash flows.
a.Operating activity
b.Investing activity
c.Financing activity
____ 1.Cash received from a one-time sale of used office equipment.
____ 2.Cash paid for dividends.
____ 3.Cash received from customers.
____ 4.Cash received from stockholder contributions.
____ 5.Cash paid for utilities.
____ 6.Cash paid for a delivery van to be used in the business.

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Definitions:

Marginal Tax Rate

The rate at which additional income is taxed, reflecting the proportion of each additional dollar of income that goes to taxes.

Weighted Average Cost of Capital

The average rate of return a company is expected to pay its security holders, weighted by the proportion of each security in the total capital structure.

Preferred Shares

Preferred shares are a type of stock that provides shareholders preferential payments of dividends and priority over common stock in asset liquidation, but generally do not carry voting rights.

Common Shares

Equities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.