Essay
Identify each of the following items as operating O, investing I, or financing F activities on the statement of cash flowsassuming the indirect method. If an item is not on the statement, please mark it as none of these N. If the item is an inflow, please indicate by a +,
e.g. O+, I+ or F+. If the item is an outflow, please indicate by brackets,
e.g., <O> for operating outflow, <I> for investing outflow, and <F> for financing outflow:
a Paid an account payable for inventory purchased in the previous accounting period.
b Amortization of debt issuance costs
c Paid a dividend to stockholders.
d Paid the interest on a note payable to National Street Bank.
e Paid the principal amount due on the note payable to National Street Bank.
f Transferred cash from a checking account into a money market fund.
g Purchased equipment for cash.
Correct Answer:

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a. <O> b. O+ c...View Answer
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