Reference no: EM13339685

For each of the following transactions on the statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section, or in the Financing Activities section (F). Assume the use of the direct method in the Operating Activities section.

1. Repayment of long-term debt
2. Purchase of Equipment
3. Collection of customer's account
4. Issuance of common stock
5. Purchase of another company
6. Payment of dividends
7. Payment of income taxes
8. Sale of equipment

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the direct method (D) or the indirect method (I).

1. Net income
2. Increase in accounts receivable
3. Collection on accounts receivable
4. Payments on accounts payable
5. Decrease in accounts payable
6. Depreciation expense
7. Gain on early retirement of bods
8. Cash sales