Cash Flow

  Cash Flow   Complete a 2-part assessment in which you classify cash inflows and outflows and prepare a cash flow statement. Part1: For this part of the assessment, use the Assessment 3, Part 1 Template to classify each of the following cash inflows and outflows as operating, investing, or financing activities: Sale of a piece of company equipment. Sale of common stock. Payment to suppliers for merchandise purchased. Payment to lenders for interest on note payable. Sale of investments in other companies. Purchase of land to expand plant size. Payment to stockholders as cash dividends. Sale of goods or services. Payment to employees for wages and salaries. Lending of money to other business entities. Payment to government for property and income taxes. Collection of principal on loans to other entities. Interest and dividends received. Issue of bonds to support company growth. Purchase of investments in debt or equity of other entities. Payment to other entities to cover expenses incurred. Buyback of company stock from investors. Part2: Use the Assessment 3, Part 2 Template to determine the appropriate activity (operating, investing, or financing) for each transaction listed for Skylar Enterprises, Inc., and prepare the cash flow statement using the indirect method in good form for reporting. Data is provided in the Information worksheet in the template; complete the statement of cash flow in the Cash Flow Statement worksheet. Use the suggested materials in the Resources if you need more information on preparing cash flow statements.