Classification of Cash Flows

question 58

Essay

Classification of cash flows
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year.Use the following code: O = operating activities,I = investing activities,and F = financing activities
Assume this company uses the direct method.If the event does not involve a cash flow that should be included in the statement of cash flows,use an X.
____ (a)Declared a dividend to be paid early next year.
____ (b)Recorded depreciation expense for the current year.
____ (c)At year-end,paid rent in advance for the next six months.
____ (d)Issued capital stock for cash; management plans to use this cash to invest in marketable securities.
____ (e)Sold a parcel of unused land at a loss.
____ (f)Collected principal amount due on a note receivable.
____ (g)Used the cash received in d,above,to purchase marketable securities.
____ (h)Collected interest due on note receivable described in f,above.
____ (i)Made an adjusting entry to accrue interest payable at year-end.
____ (j)Collected account receivable from a customer who made a large credit purchase in a prior period.

---

Definitions:

Consideration

The degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust.

Marketing Campaigns

Structured sequences of activities and messages designed to promote a product, service, or brand to targeted audiences.

Innovative Strategies

Creative and novel approaches developed to solve problems or achieve objectives in a unique way.

Servant Leadership

A leadership philosophy which focuses on serving others, putting the needs of the team first and fostering a sense of community and teamwork.