The best classification of each transaction and activity of Bald Eagle, Inc. for the year ended December 31, Year 7 is as follows:
Cash Flow Classification
1. Equipment Purchase $30,000 Investing Activity
2. Sale of available-for-sale securities $7,000 Investing Activity
3. Payment of income taxes $40,000 Operating Activity
4. Issuance of 40,000 shares at $2.50 par Financing Activity
5. Payment of interest $2,000 Operating Activity
6. Dividend payment $10,000 Financing Activity
7. Received $1,500 interest Operating Activity
8. Sold land for $17,000 Investing Activity
9. Payment of $7,000 to vendors for inventory Operating Activity
<h3>What are cash flow activities?</h3>
Cash flow activities that affect the Cash Flow Statement include:
- Operating Activity
- Investing Activity
- Financing Activity.
<h3>Options List:</h3>
Operating Activity
Investing Activity
Financing Activity
Depends on nature and purpose
Not reported on Bald Eagle's Statement of Cash Flows
Thus, the correct classification of the cash flow activities has been done.
Learn more about cash flow statement at brainly.com/question/735261
