Answer: Please refer to Explanation
Explanation:
A little introduction.
The Cash Flow Statement is divided into 3 sections being the operating, investing, or financing sections.
Operating Section
- The entries that fall under here are directly related to the provision of goods and services by the company for its consumers. They involve cash receipts from sales, payments to suppliers and taxes amongst others.
Investing Section
- This part of the Statement includes cash spent or cash generated from Investment activities such as the purchase of other company stocks or bonds and the cash entries related to Fixed assets.
Financing Section
- This section has to do with the entries related to how the company is funded and include shares, bonds and dividends.
Classifying the Above therefore we have,
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. OPERATING ACTIVITY.
(e) Payment of dividends. FINANCING ACTIVITY.
(f) Issuance of capital stock. FINANCING ACTIVITY.
If you need any further clarification do comment. Cheers.
