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. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (b) Exchange of land for patent. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (c) Sale of building at book value. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (d) Payment of dividends. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (e) Depreciation. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (f) Receipt of dividends on investment in stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (g) Receipt of interest on notes receivable. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (h) Issuance of common stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (i) Amortization of patent. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (j) Issuance of bonds for land. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (k) Purchase of land. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (l) Conversion of bonds into common stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (m) Sale of land at a loss. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (n) Retirement of bonds. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing 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. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (b) Exchange of land for patent. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (c) Sale of building at book value. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (d) Payment of dividends. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (e) Depreciation. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (f) Receipt of dividends on investment in stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (g) Receipt of interest on notes receivable. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (h) Issuance of common stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (i) Amortization of patent. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (j) Issuance of bonds for land. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (k) Purchase of land. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (l) Conversion of bonds into common stock. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (m) Sale of land at a loss. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing Activity (n) Retirement of bonds. select a type of activity: Operating Activity, Financing Activity, NonCash Investing and financing activity, Investing 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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