Chapter 12

Question 1

-Issuing stock
-Selling treasury stock
-Borrowing money

Answer 1

Financing Activities Cash Inflow
(increase in cash)

Question 2

-Payment of dividends
-Purchase of treasury stock
-Payment of principal amount of debts

Answer 2

Financing Activities Cash Outflow
(decrease in cash)

Question 3

-Sale of plant assets
-Receipts on loans receivable
-Sale or maturity of investments

Answer 3

Investing Activities Cash Inflow
(increase in cash)

Question 4

-Acquisition of plant asset
-Purchase of investments
-Making loans

Answer 4

Investing Activities Cash Outflow
(decrease in cash)

Question 5

-Collections from customers
-Receipts of interest and dividends on investments
-other operating receipts

Answer 5

Operating Activities Cash Inflow
(increase in cash)

Question 6

-Payments to suppliers
-Payments to employees
-Payments of interest and income tax
-Other operating disbursements

Answer 6

Operating Activities Cash Outflow
(decrease in cash)