PE 16-1B Classifying cash flows

Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows.

a. Purchase of investments
b. Disposal of equipment
c. Payment for selling expenses
d. Collection of accounts receivable
e. Cash sales
f. Issuance of bonds payable


Answer:
a. Investing
b. Investing
c. Operating
d. Operating
e. Operating
f. Financing