Classification of Cash Flows (indirect method) - Ch 21

Test 3, Chapter 21 - Statement of Cash Flows

Proceeds from issuance of common stock

Financing Activities

Add

Proceeds from sale of land

Investing activities

Add

Payment of dividends

Financing Activities

Subtract

Payment to purchase available for sale securities

Investing Activities

Subtract

Gain on sale of land

Operating Activities (2)

Subtract

Depreciation expense

Operating Activities (1)

Add

Acquired equipment by capital lease

Schedule of investing and financing activities (N)

- investing, + financing

Gain on sale of available for sale securities

Operating activities (2)

Subtract

Payment to retire bonds payable

Financing activities

Subtract

Gain on early extinguishment of debt

Operating activities (2)

Subtract

Common stock exchanged for land

Schedule of investing and financing activities (N)
- investing, + financing

Payment to purchase equipment

Investing activities

Subtract

Converted preferred stock into common stock

Schedule of investing and financing activities (N)
- financing, + financing

Patent amortization

Operating activities (1)

Add

Loss on disposal of equipment

Operating activities (2)

Add

Loss in write down of inventory

Operating activities (2)

Add

Proceeds from sale of available for sale securities

Investing

Add

Payment to purchase a new patent

Investing activities

Subtract

Proceeds from issuance of a note

Financing activities

Add

Amortization of bonds payable premium

Operating activities (3)

Subtract

Increase in salaries payable

Operating activities (4)

Add

Gain from sale of equipment

Operating activities (2)

Subtract

Decrease in accounts receivable

Operating activities (4)

Add

Increase in inventory

Operating activities (4)

Subtract

Decrease in accounts payable

Operating activities (4)

Subtract

Proceeds from sale of investments

Investing activities

Add

Bonds payable premium amortization

Operating activities (3)

Subtract

Net income

Operating

-

Loss on sale of investments

Operating activities (2)

Add

Decrease in deferred taxes payable

Operating activities (4)

Subtract

Proceeds from issuance of preferred stock

Financing activities

Add

Loss on sale of land

Operating activities (2)

Add

Increase in income taxes payable

Operating activities (4)

Add

Decrease in salaries payable

Operating activities (4)

Subtract

Payment to purchase a building

Investing activities

Subtract

Receipts from issuance of long-term bonds payable

Financing activities

Add

Decrease in inventory

Operating activities (4)

Add

Amortization of bonds investment premium

Operating activities (3)

Add

Proceeds from sale of a building

Investing activities

Add

Proceeds from issuance of notes payable

Financing activities

Add

Payment to purchase machinery

Investing activities

Subtract

Bonds payable converted into common stock

Schedule of investing and financing activities (N)

Proceeds from sale of available of sale securities

Investing activities

Add

Amortization of bonds payable discount

Operating activities (3)

Add

Increase in interest payable

Operating activities (4)

Add

Payment to acquire long-term investments

Investing activities

Subtract

Loss on sale of land

Operating activities

Add