Classification of cash flows
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year.Use the following code: O = operating activities,I = investing activities,and F = financing activities
Assume this company uses the direct method.If the event does not involve a cash flow that should be included in the statement of cash flows,use an X.
____ (a)Declared a dividend to be paid early next year.
____ (b)Recorded depreciation expense for the current year.
____ (c)At year-end,paid rent in advance for the next six months.
____ (d)Issued capital stock for cash; management plans to use this cash to invest in marketable securities.
____ (e)Sold a parcel of unused land at a loss.
____ (f)Collected principal amount due on a note receivable.
____ (g)Used the cash received in d,above,to purchase marketable securities.
____ (h)Collected interest due on note receivable described in f,above.
____ (i)Made an adjusting entry to accrue interest payable at year-end.
____ (j)Collected account receivable from a customer who made a large credit purchase in a prior period.
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