Question

the following are typical classifications used in the statement of cash flows for apple co.

a Operating cash inflow. b. Operating cash outflow. (add to Net Income) (deduct from Net Income) c. Investing cash inflow. d. Investing cash outflow. e. Financing cash inflow. f Financing cash outflow. Required: For each 2019 event listed below, select the appropriate category which a nect the appropriate category which describes the effect of the event on Aquinas Co.'s indirect method statement of cash flows: 1. Issuance (borrowing) of mortgage due by Aquinas in 2040. 2. Increase in accounts receivable. 3. Cash dividends declared and paid. 4. Purchase of common stock of Seton, Inc. as an investment. 5. Decrease in salaries payable. 6. Cash paid for addition to corporate headquarters building. 7. Depreciation expense on manufacturing facility. 8. Redemption (payment) of bonds payable at maturity. 9. Purchase of treasury stock (common) for cash. 10. Cash proceeds from sale of land.

Answer 1

Financing cash inflow	1. Issuance (borrowing) of mortgage due by Aquinas in 2040.
Operating cash outflow (deduct from Net Income)	2. Increase in accounts receivable.
Financing cash outflow	3. Cash dividends declared and paid.
Investing cash outflow	4. Purchase of common stock of Seton, Inc. as an investment.
Operating cash outflow (deduct from Net Income)	5. Decrease in salaries payable.
Investing cash outflow	6. Cash paid for addition to corporate headquarters building.
Operating cash outflow (add to Net Income)	7. Depreciation expense on manufacturing facility.
Financing cash outflow	8. Redemption (payment) of bonds payable at maturity.
Financing cash outflow	9. Purchase of treasury stock (common) for cash.
Investing cash inflow	10. Cash proceeds from sale of land.

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