Answer:
Transaction Type of Activity Cash Inflow or
Cash Outflow
1 Payment of employee salaries Operating Cash outflow
2. Sale of land for cash Investing Cash Inflow
3. Purchase of rent in advance investing Cash outflow
4.Collection of an account receivable Operating Cash inflow
5.Issuance of common stock Financing Cash inflow
6.Purchase of inventory Operating Cash outflow
7.Collection of notes receivable Investing Cash inflow
8.Payment of income taxes Operating Cash outflow
9. Sale of equipment for a note recei. Non cash No effect
10. issuance of bonds Financing Cash inflow
11. Loan to another firm Investing Cash outflow
12. Payment of a long term note pay. Financing Cash outflow
13. Purchase of treasury stock Financing Cash outflow
14. Payment of an account payable Operating Cash outflow
15. Sale of equipment for cash Investing Cash inflow
Explanation:
Statement of cash flows shows the cash generated and expended by an entity during an accounting period. The statement divides the inflow and outflow of cash into three sections: operating, investing and financing activities.
Operating activities contain activities relating to cash inflow and outflow of entity`s primary operation during a given year. Example of this inflow and outflow are cash receipt from customers and cash payment to vendors.
Investing activities contain activities relating to entity`s investment in assets. Example includes cash received from disposal of an asset.
Financing activities contain activities relating to entity`s relationship with provider of capital like equity owner and debt holder.
Cash inflow refers incoming of cash into the business. Example includes cash received from customers. Cash outflow refers to outgoing of cash from the business. Example includes cash paid to vendors.
