E13-2 Indicate how each item should be classified in the statement of cash flows

An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.

Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity and significant noncash investing and financing activity.

  1. Payment of interest on notes payable
  2. Exchange of land patent
  3. Saleof building at book value
  4. Payment of dividends
  5. Depreciation
  6. Receipt of dividends on investment stock
  7. Receipt of interest on receivable
  8. Issuance of capital stock
  9. Amortization of patent
  10. Issuance of bonds for land
  11. Purchase of Land
  12. Conversion of bonds into common stock
  13. Loss on sale of land
  14. Retirement of bonds

 

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