Answer:
a. Issuance of common stock for cash
(F) +Cash
b. Purchase of new forklift with cash
(I) -Cash
c. Purchase of equipment by issuing note payable
(I) -Cash
d. Depreciation of building
(O) No cash changes
e. Decrease in raw materials inventory
(O) +Cash
f. Payment of cash dividend
(F) -Cash
g. Increase in prepaid rent expense
(O) -Cash
h. Purchase of treasury stock
(F) -Cash
i. Cash sale of land (no gain or loss)
(I) +Cash
j. Sale of long-term investment (no gain or loss)
(I) +Cash
k. Increase in salaries payable
(O) +Cash
l. Amortization of patent
(O) No cash dealing
m. Purchase building with cash
(I) -Cash
n. Decrease in accrued taxes payable
(O) -Cash
o. Gain on sale of equipment
(I) +Cash
p. Repayment of long-term debt
(F) -Cash
Explanation:
Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.
All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.
Cash flow from financing activities is the cash inflows and outflows related to the fund of the business.
