Chapter 1, Problem 19E

To determine

Concept Introduction:

The concept of Cash flows statement

Cash flows Statement:

It indicates the company's cash receipts and payments during a period. It is classified in three activities:

Cash flows from operating activities:

It shows the net cash flows generated from the primary operations of the company such as cash sales, royalties, etc.

Cash flows from investing activities:

It shows the net cash flows from the investments such as purchase of building, interest on securities, etc.

Cash flows from financing activities:

It shows the net effects that were caused by transactions with owners or lenders such as payment of dividend, raising capital, etc.

To Classify:

The following transactions into operating, investing or financing activities.