Question

Indicate the type of cash flows resulting from the following transactions and whether it would increase (I) or decrease (D) the cash flows. If a transaction has no cash flow effects, so indicate.

Transaction	Operating	Investing	Financing	No CF effect
EXAMPLE: Payment of note payable			D
Payment of dividends
Acquisition of land by issuing a note
Payments to suppliers
Interest paid on bonds payable
Purchase of equity securities on the market
Cash received from customers
Issuance of bonds payable
Purchase of patent
Sale of inventory on credit
Exchange of common stock for equipment
Purchase of inventory with cash
Refinancing current liability with long-term debt
Sale of old equipment used in manufacturing operations for cash
Payment of one-year premium for fire insurance

Answer 1

Transaction Operating Investing Financing No CF effect LD No cash flow effect EXAMPLE: Payment of note payable Payment of dividends |Acquisition of land by issuing a note Payments to suppliers Interest paid on bonds payable Purchase of equity securities on the market Cash received from customers Issuance of bonds payable Purchase of patent Sale of inventory on credit Exchange of common stock for equipment Purchase of inventory with cash Refinancing current liability with long-term debt Sale of old equipment used in manufacturing operations for cash Payment of one-year premium for fire insurance No cash flow effect No cash flow effect D No cash flow effect