Listed Below Are the Reporting Classifications for a Statement of Cash

Essay

Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction. $$\begin{array} { | l | l | l | } \hline \text { CLASSIFICATION } & \text { TRANSACTIONS } & \text { NUMIBER } \\\hline\text { 1. Not reported for the } & & \\\text { statement of cash flows } & \text { Payment of cash dividends. } &- \\\hline \text { 2.Noncash financing and } & \\\text { investing activity } & \text { Purchase of treasury stock. } &- \\\hline & \text { Investment of excess cash in an interest-bearing } &- \\\text { 3. Financing cash outflow } & \text { security classified as a cash equivalent. } \\\hline & \text { Appropriation of retained earnings for expansion } & \\\text { 4. Financing cash inflow } &\text { of the } \mathrm{R} \& \mathrm{D} \text { program. }&-\\\hline \text { 5.Not reported for the } & \text { Acquisition of equipment under a finance lease } & -\\\text { statement of cash flows } & \text { agreement. } & -\\\hline\end{array}$$