1 answer

CORRECT THE BOXES IN RED LAST ATTEMPt PLEASE ANSWER CORRECT THANKS Application Problem 5-1B Your answer...

Question:

Application Problem 5-1B Your answer is partially correct. Try again. Indicate whether each of the following items should be

CORRECT THE BOXES IN RED

LAST ATTEMPt PLEASE ANSWER CORRECT THANKS

Application Problem 5-1B Your answer is partially correct. Try again. Indicate whether each of the following items should be classified as an operating, investing, or financing activity on the statement of cash flows. If an item does not belong on the statement, indicate as "NA" (Not applicable). a. Declaration of dividends on common shares, to be paid later NA b. Payment of dividends on common shares T Financing A c. Purchase of equipment Investing A |x- d. Receipt of cash from the sale of a warehouse Operating A e. Receipt of cash through a long-term bank loan Financing A f. Interest payments on a long-term bank loan Financing g. Acquisition of land for cash T Investing h. Investment in another company by purchasing some of its shares T Investing A i. Net decrease in accounts payable T Operating A

Answers

Ans: Receipt of cash from the sale of warehouse is Investing activity.

Interest payment on long term bank loan - Operating activity.

Interest payment can be seen in direct method of cash flow while in indirect method, it is included in net income and adjusted for cash when taking into account change in net working capital

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