Exercise 4-12: Statement of Cash Flows Classifications

Collection of cash from customers a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

A. operating

Payment of employee salaries a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

A. operating

Payment of interest on note payable a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

A. operating activities

Purchase of equipment for cash a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

B. Investing

Purchase of common stock of another corporation for cash a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

B. investing

Sale of equipment for cash a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

B. investing

Issuance of common stock for cash a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

C. financing

Payment of cash dividends to shareholders a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

C. financing

Payment of principal on note payable a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

C. financing

Cash proceeds from a note payable a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

C. financing activities

Issuance of bonds payable in exchange for land and building a. operating activities b. investing activities c. financing activities d. non-cash investing and financing activities

D. non-cash investing and financing