Textbook Problem

Classifying and Analyzing Business Activities

Cowell Company had the following business activities during 2019:

Cowell Company uses the indirect method to prepare its statement of cash flows.

Required:

1. Indicate whether each activity should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity.

2. For each activity that is reported on the statement of cash flows, indicate whether each activity produces a cash inflow, cash outflow, or no cash effect.