(L.OBJ. 4) Identifying activity categories—direct method [10-15 min] Consider the follo...

(L.OBJ. 4) Identifying activity categories—direct method [10-15 min]

Consider the following transactions:

Requirement

1. Identify each of the transactions as a(n)

• Operating activity (O),

• Investing activity (I),

• Financing activity (F),

• Noncash investing and financing activity (NIF), or

• transaction that is nor reported on the Statement of Cash Flows (N).

For each cash flow, indicate whether the item increases (+) or decreases (-) cash. The direct method is used for cash flows from operating activities.