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27 May, 12:03

Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Retirement of bonds payable

b. Purchase of inventory for cash

c. Cash sales

d. Repurchase of common stock

e. Payment of accounts payable

f. Disposal of equipment

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Answers (1)
  1. 27 May, 14:20
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    Classifying Cash Flows:

    Retirement of bonds payable ⇒ Financing activity

    Purchase of inventory for cash ⇒ Operating activity

    Cash sales ⇒ Operating activity

    Repurchase of common stock ⇒ Financing activity

    Payment of accounts payable ⇒ Operating activity

    Disposal of equipment ⇒ Investing activity
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