Answer:
a. Purchase of Equipment - (3) investing
b. Redemption of bonds payable - (4) financing
c. Sale of building - (3) investing
d. Depreciation - (1) operating—add to net income;
e. Exchange of equipment for furniture - (5) significant noncash investing and financing activities
f. Issuance of capital stock - (4) financing
g. Amortization of intangible assets - (1) operating—add to net income
h. Purchase of treasury stock - (4) financing
i. Issuance of bonds for land - (5) significant noncash investing and financing activities
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
