An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Wellman Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.Indicate how each item should be classified in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, and significant noncash investing and financing activity. (a) Payment of interest on notes payable. Operating ActivityNoncash Investing and/or Financing ActivityFinancing ActivityInvesting Activity (b) Exchange of land for patent. Investing ActivityOperating ActivityNoncash Investing and/or Financing ActivityFinancing Activity (c) Sale of building at book value. Financing ActivityInvesting ActivityNoncash Investing and/or Financing ActivityOperating Activity (d) Payment of dividends. Operating ActivityInvesting ActivityNoncash Investing and/or Financing ActivityFinancing Activity (e) Depreciation. Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity (f) Receipt of dividends on investment in stock. Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity (g) Receipt of interest on notes receivable. Investing ActivityOperating ActivityFinancing ActivityNoncash Investing and/or Financing Activity (h) Issuance of common stock. Noncash Investing and/or Financing ActivityInvesting ActivityFinancing ActivityOperating Activity (i) Amortization of patent. Investing ActivityFinancing ActivityNoncash Investing and/or Financing ActivityOperating Activity (j) Issuance of bonds for land. Noncash Investing and/or Financing ActivityFinancing ActivityOperating ActivityInvesting Activity (k) Purchase of land. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and/or Financing Activity (l) Conversion of bonds into common stock. Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and/or Financing Activity (m) Sale of land at a loss. Noncash Investing and/or Financing ActivityInvesting ActivityOperating ActivityFinancing Activity (n) Retirement of bonds. Operating ActivityFinancing ActivityNoncash Investing and/or Financing ActivityInvesting Activity

An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Wellman Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.Indicate how each item should be classified in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, and significant noncash investing and financing activity. (a) Payment of interest on notes payable. Operating ActivityNoncash Investing and/or Financing ActivityFinancing ActivityInvesting Activity (b) Exchange of land for patent. Investing ActivityOperating ActivityNoncash Investing and/or Financing ActivityFinancing Activity (c) Sale of building at book value. Financing ActivityInvesting ActivityNoncash Investing and/or Financing ActivityOperating Activity (d) Payment of dividends. Operating ActivityInvesting ActivityNoncash Investing and/or Financing ActivityFinancing Activity (e) Depreciation. Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity (f) Receipt of dividends on investment in stock. Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity (g) Receipt of interest on notes receivable. Investing ActivityOperating ActivityFinancing ActivityNoncash Investing and/or Financing Activity (h) Issuance of common stock. Noncash Investing and/or Financing ActivityInvesting ActivityFinancing ActivityOperating Activity (i) Amortization of patent. Investing ActivityFinancing ActivityNoncash Investing and/or Financing ActivityOperating Activity (j) Issuance of bonds for land. Noncash Investing and/or Financing ActivityFinancing ActivityOperating ActivityInvesting Activity (k) Purchase of land. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and/or Financing Activity (l) Conversion of bonds into common stock. Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and/or Financing Activity (m) Sale of land at a loss. Noncash Investing and/or Financing ActivityInvesting ActivityOperating ActivityFinancing Activity (n) Retirement of bonds. Operating ActivityFinancing ActivityNoncash Investing and/or Financing ActivityInvesting Activity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(a)	Payment of interest on notes payable.	Operating ActivityNoncash Investing and/or Financing ActivityFinancing ActivityInvesting Activity

(b)	Exchange of land for patent.	Investing ActivityOperating ActivityNoncash Investing and/or Financing ActivityFinancing Activity

(c)	Sale of building at book value.	Financing ActivityInvesting ActivityNoncash Investing and/or Financing ActivityOperating Activity

(d)	Payment of dividends.	Operating ActivityInvesting ActivityNoncash Investing and/or Financing ActivityFinancing Activity

(e)	Depreciation.	Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity

(f)	Receipt of dividends on investment in stock.	Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and/or Financing Activity

(g)	Receipt of interest on notes receivable.	Investing ActivityOperating ActivityFinancing ActivityNoncash Investing and/or Financing Activity

(h)	Issuance of common stock.	Noncash Investing and/or Financing ActivityInvesting ActivityFinancing ActivityOperating Activity

(i)	Amortization of patent.	Investing ActivityFinancing ActivityNoncash Investing and/or Financing ActivityOperating Activity

(j)	Issuance of bonds for land.	Noncash Investing and/or Financing ActivityFinancing ActivityOperating ActivityInvesting Activity

(k)	Purchase of land.	Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and/or Financing Activity

(l)	Conversion of bonds into common stock.	Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and/or Financing Activity

(m)	Sale of land at a loss.	Noncash Investing and/or Financing ActivityInvesting ActivityOperating ActivityFinancing Activity

(n)	Retirement of bonds.	Operating ActivityFinancing ActivityNoncash Investing and/or Financing ActivityInvesting Activity

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