Question

I need help with this accounting homework assignment.

Exercise 3: Statement of Cash Flows Required: Indicate where each of the following would appear on a Statement of Cash Flows prepared using the direct method for the operating section: A. Cash flows from operating activities B. Cash flows from investing activities c. Cash flows from financing activities D. Schedule of significant noncash investing and financing activities E. Would not appear on a statement of cash flows prepared under the direct method Transaction Answer Purchase of inventory for cash 2 Purchase of inventory on account 3 Purchase of PP&E for cash 4 Purchase of Treasury Stock 5 Receipt of dividends 6 Receipt of interest on note receivable 7 Retirement of bonds payable 8 Sale of intangible asset for cash 9Sale of intangible asset for long-term note 10 Sale of machinery for cash 11 Payment of interest on note payable 12 Payment of principal on note payable 13 Payment on accounts payable 14 Purchase of common stock of another corporation 15 Purchase of intangible asset for cash 16 Issuance of common stock for cash 17 Payment for advertising 18 Payment of cash dividends to shareholders 19 Payment of employee salaries 20 Payment of income taxes 21 Cash proceeds from a note payable 22 Collection of cash from customers 23 Collection of principal of note receivable 24 Issuance of bonds payable for cash 25 Issuance of bonds payable in exchange for PP&E

Answer 1

1. - Operating activities (adjusting entry)

2. - does not appear in cash flow statement as it is on credit

3. - Investing activities

4. - Investing activities

5.Investing activity

6.Does not appear under direct method

7. Does not appear in direct method

8. Investing activities

9.Schedule of non cash financing and investing activities

10. Investing activities

13. Operating activities

14.Schedule of non cash financing and investing activities

15. Operating activities

16.Financing activities

17. Does not appear under direct method

18. Financing activities

19.Does not appear under direct method

20. Does not appear under direct method

21. Operating activities

22. Operating activities

23. Schedule of non cash financing and investing activities

24. Financing activities

25. Schedule of non cash financing and investing activities