Classifying cash flow items Consider the following transactions: Purchased equipment for $130,000 cash. Issued $14 par preferred stock for cash. Cash received from sales to customers of $35,000. Cash paid to vendors, $17,000. Sold building for $19,000 gain for cash. Purchased treasury stock for $28,000. Retired notes payable with 1,250 shares of the company’s common stock. Identify the category of the statement of cash flows in which each transaction would be reported.

Question

Classifying cash flow items

Consider the following transactions:

  • Purchased equipment for $130,000 cash.
  • Issued $14 par preferred stock for cash.
  • Cash received from sales to customers of $35,000.
  • Cash paid to vendors, $17,000.
  • Sold building for $19,000 gain for cash.
  • Purchased treasury stock for $28,000.
  • Retired notes payable with 1,250 shares of the company’s common stock.

Identify the category of the statement of cash flows in which each transaction would be reported.

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