Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification.using the capital letter only: O.Operating Activity • L.Investing Activity F.Financing Activity • OL.Operating and Investing Activity • N.Noncash Transaction Effect on Cash Flows.using the capital letter only: • L.increase • D.Decrease • N.No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.

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 12.1KTQ
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Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows.
Cash Flow Classification.using the capital letter only:
. .Operating Activity
• L.Investing Activity
• F..Financing Activity
• OL.Operating and Investing Activity
• N.Noncash Transaction
Effect on Cash Flows.using the capital letter only:
• .Increase
• D.Decrease
N.No Effect
Transaction
Cash Flow Classification
Effect on Cash Flows
Paid a cash dividend.
Decreased accounts receivable.
Increased inventory.
Retired long-term debt with cash.
Sold long-term securities at a loss.
Issued stock for equipment.
Decreased prepaid insurance.
Purchased treasury stock with cash.
Retired a fully depreciated truck (no gain or loss).
Transferred cash to money market account.
Transcribed Image Text:Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification.using the capital letter only: . .Operating Activity • L.Investing Activity • F..Financing Activity • OL.Operating and Investing Activity • N.Noncash Transaction Effect on Cash Flows.using the capital letter only: • .Increase • D.Decrease N.No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.
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