Chapter 1, Problem 1.14E

Focus on Cash Flows: Matching Cash Flow Statement Items to Categories

The following items were taken from a recent cash flow statement. Note that different companies use slightly different titles for the same item. Without referring to Exhibit 1.5, mark each item in the list as a cash flow from operating activities (O), investing activities (I), or financing activities (F). Place parentheses around the letter if it is a cash outflow.

___ (1) Purchases of property, plant, and equipment

___ (2) Cash received from customers

___ (3) Cash paid for dividends to stockholders

___ (4) Cash paid to suppliers

___ (5) Income taxes paid

___ (6) Cash paid to employees

___ (7) Cash proceeds received from sale of investment in another company

___ (8) Repayment of borrowings