Question

Assume all items involve cash unless there is information to the contrary. (a) Purchase of equipment. choose the type of cash flow activity (b) Sale of building. choose the type of cash flow activity (c) Redemption of bonds. choose the type of cash flow activity (d) Cash received from sale of goods. choose the type of cash flow activity (e) Payment of dividends. choose the type of cash flow activity (f) Issuance of capital stock.

Answer 1

Answer: Please see answer in explanatory column

Explanation:Classifying each according to cash flow activity in terms of operating, investing, or financing activity gives

(a) Purchase of equipment.-----investing activity

(b) Sale of building.-----investing activity

(c) Redemption of bonds.-----financing activity

(d) Cash received from sale of goods. ------investing activity

(e) Payment of dividends.-------financing activity

(f) Issuance of capital stock. -------financing activity