Classify each item by type of business activity- operating, investing, or financing. Also indicate wether it results in an inflow or outflow of cash. Classify each item by type of business activity-operating, investing, or financing. Also indicate whether it results in an inflow oroutflow of cash.Business activityInflow/Outflowa.Loan taken out from a bankb.Cash received from customersvC.Sale of office equipment that company is done usingd.Dividends paid to shareholderse.Common shares issued to investorsf.Loan repaymentPayment to supplier for inventoryPurchase of an office buildingh. b.C.d.e.f.g.h.i.Cash received from customersSale of office equipment that company is done usingDividends paid to shareholdersCommon shares issued to investorsLoan repaymentPayment to supplier for inventoryPurchase of an office buildingSalaries paid

Statement of cash flow (CFS) refers to a financial statement of the company which shows the flows of…

Answered: Classify each item by type of business…

Classify each item by type of business activity- operating, investing, or financing. Also indicate wether it results in an inflow or outflow of cash.

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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Question

Classify each item by type of business activity- operating, investing, or financing. Also indicate wether it results in an inflow or outflow of cash.

Classify each item by type of business activity-operating, investing, or financing. Also indicate whether it results in an inflow or
outflow of cash.
Business activity
Inflow/Outflow
a.
Loan taken out from a bank
b.
Cash received from customers
v
C.
Sale of office equipment that company is done using
d.
Dividends paid to shareholders
e.
Common shares issued to investors
f.
Loan repayment
Payment to supplier for inventory
Purchase of an office building
h.

b.
C.
d.
e.
f.
g.
h.
i.
Cash received from customers
Sale of office equipment that company is done using
Dividends paid to shareholders
Common shares issued to investors
Loan repayment
Payment to supplier for inventory
Purchase of an office building
Salaries paid

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