Classify the following cash flows as operating, investing, or financing activities:

1. Sold long-term for cash.
2. Received cash payments from customers.
3. Paid cash for wages and salaries.
4. Purchased inventories for cash. .
5. Paid cash dividends.
6. Issued common stock for cash.
7. Received cash interest on a note.
8. Paid cash interest on outstanding .
9. Received cash from sale of land at a loss
10. Paid cash for property taxes on building.

I became a little confused with some of these so any help is much appreciated. Here is what I got so far. Let me know what numbers are wrong please.

1. Investing
2.. Operating
3. Operating
4. Operating
5. Financing
6. Financing
7. Investing
8. Operating
9. Investing
10. Operating

 

  • caramelqueen22us 1:03 pm on February 9, 2010

    #8 should be INVESTING, otherwise they all look o.k. Investing activitites involve long term assets; our company loaning money out to others to make a profit as well as paying or receiving interest.

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