Chapter 12, Problem 11ME

Matching Items Reported to Cash Flow Statement Categories (Direct Method)

Prestige Manufacturing Corporation reports the following items in its statement of cash flows presented using the direct method. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement under GAAP or use (NA) if the item does not appear on the statement.

________ 1. Payment for equipment purchase.

________ 2. Repayments of bank loan.

________ 3. Dividends paid.

________  4. Proceeds from issuance of stock.

________ 5. Interest paid.

________ 6. Receipts from customers.