Identify which of the following items are presented in the Operating, Investing or
Financing section of the Statement of Cash flows - or whether the item is not part of
any of these sections. Match the items accordingly. Assume the indirect method for
the calculation of the cash flows operating activities.
Note: There might be more than one match for each section category and you might
not need all section categories.
Repayment of outstanding
bank loan worth $1.2
million.
Depreciation expense for
the year equals $0.64
million.
Prepaid Rent Expense
account balance decreased
by $43,000 during the
business year.
New shares worth $1
million were issued during
the business year.
Purchases of new
equipment in cash for
$2.43 million during the
1. Operating activities
2. Investing activities
3. Financing activities
4. Neither part of operating, investing,
nor financing activities.