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Task 2: Classifying Cash Flows, Indirect Method

The following are line items that could be found in a statement of cash flows:

? Repurchase of common stock

? Interest received

? Refund of income taxes

? Principal payment on long-term notes payable

? Cash paid to suppliers and employees

? Increase in accounts payable

? Purchase of property and equipment

? Proceeds from issuing a long-term note payable

? Cash paid for taxes

? Principal payments under capital lease obligations

? Depreciation expense

? Payment of dividends on preferred stock

? Principal payments on mortgages

? Increase in accounts receivable

? Gain on sale of equipment

? Proceeds from issuing common stock

? Decrease in wages payable

? Declaration of a stock dividend

? Cash paid to suppliers for inventory

? Issuance of treasury stock for cash

? Long-term loans to officers

? Issuance of common stock for land

? Proceeds from the sale of property, plant, and equipment

? Cash received from customers

? Decrease in prepaid insurance

Classify each of the items as one of the following; assuming the operating portion of the statement of cash flows is prepared on an indirect basis.

? Cash inflow from operating activities

? Cash outflow from operating activities

? Cash inflow from investing activities

? Cash outflow from investing activities

? Cash inflow from financing activities

? Cash outflow from financing activities

? Positive adjustment to net income

? Negative adjustment to net income

? Does not appear in the operating portion of the statement of cash flows prepared on an indirect basis

? Non-cash transaction

Submission Requirements:

? Submit your answer in a Microsoft Excel file.

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