Presented below are activities from Prosser Industries, Inc
Activity
O, I, or F
Purchase of equipment
Sale of treasury stock
Payments to employees
Sale of idle land
Purchase of inventory on credit
Payment of dividends to shareholders
Redemption of bonds payable
Sale of long term investments
Payment of interest on bonds payable
Required: Please indicate whether each of these activities is classified as an (O)perating, (I)nvesting, or (F)inancing Activity on the statement of cash flows.
What will be an ideal response?
Answer:
Activity
O, I, or F
Purchase of equipment
I
Sale of treasury stock
F
Payments to employees
O
Sale of idle land
I
Purchase of inventory on credit
O
Payment of dividends to shareholders
F
Redemption of bonds payable
F
Sale of long term investments
I
Payment of interest on bonds payable
O
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