Statement of Cash Flows

Question 1

Dividend Paid

Answer 1

Financing Activity in the year paid

Question 2

Signing a Note Payable

Answer 2

Not reported on SOCF - Non Cash Transaction

Question 3

Taking out a Bank Loan

Answer 3

Cash from Bank = Financing Activity

Using Cash to purchase Fixed Assets = Investing

Question 4

List of Financing Activity

Answer 4

Issuance of Bonds Payable or Common Stock, Buying Treasury Stock, Retirement of Bonds, Cash Dividends Paid

Question 5

What is considered a financing activity?

Answer 5

Transactions Involving Liability or Stockholders Equity but NOT part of day to day operations.

Question 6

Any investment purchased within 3 months of maturity

Answer 6

Is viewed as Cash Equivalence and not reported on SOCF

Question 7

An Increase in an investment amount

Answer 7

Is a Non Cash Item and not reported on SOCF