Explanation:
The cash flow statement includes three types of activities which are listed below:
1. Operating activities: This involves all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.
It would moderate those shifts in working capital. For addition, the depreciation cost is applied to the net income, and the loss on asset sales is added while the benefit on asset sales is deducted
2. Investing activities: it tracks operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow
3. Financing operations or activities : it monitors transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is cash inflow while redemption and dividend is cash outflow.
So, the categorization is shown below:
A) Purchased a machine for $30,000, giving a long-term note in exchange. = non-cash investing and financing activity as it does not involved any cash transaction
B) Issued $50,000 par value common stock for cash = Cash inflow and come under the financing activities
C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. = non - cash financing activities as it does not involved any cash transaction
D) Declared and paid a cash dividend of $13,000.= Cash outflow and come under the financing activities
E) Sold a long-term investment with a cost of $15,000 for $15,000 cash. = Cash inflow and come under the investing activities
F) Collected $16,000 from sale of goods = Cash inflow and come under the operating activities
G) Paid $18,000 to suppliers = Cash outflow and come under the investing activities
