Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Retirement of bonds payable

b. Purchase of inventory for cash

c. Cash sales

d. Repurchase of common stock

e. Payment of accounts payable

f. Disposal of equipment

Question

Business

Demarcus Schwartz

19 September, 07:52

Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:

a. Retirement of bonds payable

b. Purchase of inventory for cash

c. Cash sales

d. Repurchase of common stock

e. Payment of accounts payable

f. Disposal of equipment

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Birdy · Answer 1

Classifying Cash Flows:

Retirement of bonds payable ⇒ Financing activity

Purchase of inventory for cash ⇒ Operating activity

Cash sales ⇒ Operating activity

Repurchase of common stock ⇒ Financing activity

Payment of accounts payable ⇒ Operating activity

Disposal of equipment ⇒ Investing activity