Question

Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended Dece
Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is informati
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Answer #1

a. Shown under financing activities as cash inflow of 200000

b. Shown under investing activities as cash outflow of 150000

c. Shown under investing activities as cash inflow of 20000

d. Shown under financing activities as cash outflow of 50000.

(a) Purchase of equipment. Investing Activity
(b) Proceeds from sale of building. Investing Activity
(c) Redemption of bonds. Financing Activity
(d) Cash received from sale of goods Operating Activity
(e) Payment of dividends. Financing Activity
(f) Issuance of common stock. Financing Activity
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