14. Red Hot Chili Peppers Co. had the following activity in its most recent year of operations. Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method. Items (a) Purchase of equipment. select a kind of activity (b) Redemption of bonds payable. select a kind of activity (c) Sale of building. select a kind of activity (d) Depreciation. select a kind of activity (e) Exchange of equipment for furniture. select a kind of activity (f) Issuance of common stock. select a kind of activity (g) Amortization of intangible assets. select a kind of activity (h) Purchase of treasury stock. select a kind of activity (i) Issuance of bonds for land. select a kind of activity (j) Payment of dividends. select a kind of activity (k) Increase in interest receivable on notes receivable. select a kind of activity (l) Pension expense exceeds amount funded. select a kind of activity

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

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14.

Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.

Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method.

	Items
(a)	Purchase of equipment.	select a kind of activity
(b)	Redemption of bonds payable.	select a kind of activity
(c)	Sale of building.	select a kind of activity
(d)	Depreciation.	select a kind of activity
(e)	Exchange of equipment for furniture.	select a kind of activity
(f)	Issuance of common stock.	select a kind of activity
(g)	Amortization of intangible assets.	select a kind of activity
(h)	Purchase of treasury stock.	select a kind of activity
(i)	Issuance of bonds for land.	select a kind of activity
(j)	Payment of dividends.	select a kind of activity
(k)	Increase in interest receivable on notes receivable.	select a kind of activity
(l)	Pension expense exceeds amount funded.	select a kind of activity

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