Question

Reebok International Ltd. is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)

Answer 1

Dividends paid ⇒ Financing Activities (F)

Repayments of long term debt ⇒ Financing Activities (F)

Depreciation and amortization ⇒ (NA)

Proceeds from issuance of common stock to employees ⇒ (NA)

Change in accounts payable and accrued expenses ⇒ Operating Activities (O)

Cash collections from customers ⇒ Operating Activities (O)

Net repayments of notes payable to banks ⇒ Financing Activities (F)

Net income ⇒ Operating Activities (O)

Payments to acquire property and equipment ⇒ Investing Activities (I)

Change in inventory ⇒ Operating Activities (O)