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In which of the three activity categories of a statement of cash flows would each of the following items appear? Indicate for each item whether it represents a cash inflow or a cash outflow:a. Cash purchase of equipmentb. Cash collection on loansc. Cash dividends paidd. Cash dividends receivede. Cash proceeds from issuing stockf. Cash receipts from customersg. Cash interest paidh. Cash interest received

Question

In which of the three activity categories of a statement of cash flows would each of the following items appear? Indicate for each item whether it represents a cash inflow or a cash outflow:

a. Cash purchase of equipment
b. Cash collection on loans
c. Cash dividends paid
d. Cash dividends received
e. Cash proceeds from issuing stock
f. Cash receipts from customers
g. Cash interest paid
h. Cash interest received

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Step 1

Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business i.e. operating activities, investing activities and financing activities.

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for ...

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