Analysis of comparative balance sheets


An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Judd 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.

(a)
Payment of interest on notes payable.
pixel.gif Financing ActivityNoncash Investing and Financing ActivityInvesting ActivityOperating Activity





(b)
Exchange of land for patent.
pixel.gif Noncash Investing and Financing ActivityInvesting ActivityFinancing ActivityOperating Activity





(c)
Sale of building at book value.
pixel.gif Investing ActivityOperating ActivityFinancing ActivityNoncash Investing and Financing Activity





(d)
Payment of dividends.
pixel.gif Noncash Investing and Financing ActivityInvesting ActivityFinancing ActivityOperating Activity





(e)
Depreciation.
pixel.gif Investing ActivityFinancing ActivityOperating ActivityNoncash Investing and Financing Activity





(f)
Conversion of bonds into common stock.
pixel.gif Noncash Investing and Financing ActivityFinancing ActivityInvesting ActivityOperating Activity





(g)
Receipt of interest on notes receivable.
pixel.gif Operating ActivityInvesting ActivityNoncash Investing and Financing ActivityFinancing Activity





(h)
Issuance of capital stock.
pixel.gif Noncash Investing and Financing ActivityInvesting ActivityFinancing ActivityOperating Activity





(i)
Amortization of patent.
pixel.gif Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity





(j)
Issuance of bonds for land.
pixel.gif Investing ActivityOperating ActivityNoncash Investing and Financing ActivityFinancing Activity





(k)
Purchase of land.
pixel.gif Noncash Investing and Financing ActivityOperating ActivityFinancing ActivityInvesting Activity





(l)
Receipt of dividends on investment in stock.
pixel.gif Investing ActivityNoncash Investing and Financing ActivityFinancing ActivityOperating Activity





(m)
Loss on disposal of plant assets.
pixel.gif Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and Financing Activity





(n)
Retirement of bonds.
pixel.gif Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity

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Accounting Basics: Analysis of comparative balance sheets
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