For each of the following transactions, indicate whether the cash flow is an operating, investing, or financing activity for purposes of preparing a statement of cash flows. In addition, be specific with respect to whether the activity leads to an inflow of cash or an outflow of cash from the company's perspective. A company pays salaries to employees. Choose ... A company receives cash for services it will perform in the future. Choose ... A company pays back the principal on a bank loan evidenced by a promissory note. financing activity - outflow of cash Choose ... A company sells equipment previously used in its business for cash. A company makes a cash purchase of equipment to be used in its business. investing activity - outflow of cash A company pays a cash dividend to its stockholders. Choose ...
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