Answer:
(a) Purchase of equipment: investing; it is an outflow.
(b) Redemption of bonds payable: financing; it is an outflow.
(c) Sale of building: investing; it is an inflow.
(d) Depreciation: operating - add to net income.
(e) Exchange of equipment for furniture: significant noncash investing and financing activities.
(f) Issuance of capital stock: financing; it is an outflow.
(g) Amortization of intangible assets: operating - add to net income.
(h) Purchase of treasury stock: financing; it is an outflow.
(i) Issuance of bonds for land: significant noncash investing and financing activities.
(j) Payment of dividends: financing; it is an outflow.
(k) Increase in interest receivable on notes receivable: operating - deduct from net income.
(l) Pension expense exceeds amount funded: operating - add to net income.
Explanation:
A financial statement in accounting are written reports that measures an organization's financial performance, strength and liquidity over a specific accounting period. Financial performance is a summary of how an organization incurs both revenues and expenses with respect to its operating and non-operating activities.
The indirect method of cash-flow statements, adjusts net income for activities or items that affects reported net income or loss rather than cash.
