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Alfred Company Manufactures Men's Clothing

Question 123

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Alfred Company manufactures men's clothing. During 20X2, the company reported the following items that affected cash. Indicate whether each of these items is a cash flow from operating activities (O), investing activities (I), or financing activities (F).  Description  Classification  Purchased equipment by paying cash  Collected cash on account from customers  Paid dividends to shareholders  Paid cash for supplies  Paid suppliers for fabric  Borrowed money from bank on a long-term note  Paid interest to bank on the note  Paid wages to employees  Sold shares to new shareholders \begin{array} { | l | l | } \hline \text { Description } & \text { Classification } \\\hline \text { Purchased equipment by paying cash } & \\\hline \text { Collected cash on account from customers } & \\\hline \text { Paid dividends to shareholders } & \\\hline \text { Paid cash for supplies } & \\\hline \text { Paid suppliers for fabric } & \\\hline \text { Borrowed money from bank on a long-term note } & \\\hline \text { Paid interest to bank on the note } & \\\hline \text { Paid wages to employees } & \\\hline \text { Sold shares to new shareholders } & \\\hline\end{array}

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Purchased equipment by paying cash: I
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