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Each of the Events Below May Have an Effect on the Indirect

Question 238

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Each of the events below may have an effect on the indirect statement of cash flows. Designate how the event should be reported within the statement of cash flows.
(Note: Answers may be used more than once, or not at all)

Premises:
Issued bonds payable for cash
Paid an account payable
Issued checks for the weekly payroll
Purchased treasury stock for cash
Paid cash for a new car for a traveling salesperson
Declared and paid a cash dividend
Converted bonds payable into common stock
Received interest on a long-term bond investment
Paid cash for 40% interest in another company
Sold a long-term stock investment for cash at book value
Responses:
Investing activity; cash inflow
Investing activity; cash outflow
Financing activity; cash inflow
Financing activity; cash outflow
Operating activity; cash inflow
Operating activity; cash outflow
Noncash investing and financing activity

Correct Answer:

Issued bonds payable for cash
Paid an account payable
Issued checks for the weekly payroll
Purchased treasury stock for cash
Paid cash for a new car for a traveling salesperson
Declared and paid a cash dividend
Converted bonds payable into common stock
Received interest on a long-term bond investment
Paid cash for 40% interest in another company
Sold a long-term stock investment for cash at book value
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