Indicate whether each of the following activities would be...

Indicate whether each of the following activities would be reported on the statement of cash flows as an operating activity, an investing activity, a financing activity, or does not appear on the cash flow statement. (a) Cash paid for building (b) Cash paid to suppliers (c) Cash paid for dividends (d) Cash received from customers (e) Cash received from the sale of common stock (f) Cash received from the sale of a building (g) Borrowed cash from a bank

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00:01 So this problem is wanting us to determine where in the statement of cash flows these items go.

00:07 And if any don't appear on the cash flow statement.

00:11 So looking through them, they are all related to the actual movement of cash.

00:17 So in -flow and outflow of cash in a business.

00:21 And that means that they will be in the cash flow statement.

00:24 So i don't see anything on here that should not be included.

00:28 So first let's just make some columns.

00:32 We'll say operating.

00:34 So these are the three sections for cash flow statement.

00:44 Operating, investing, and financing.

01:01 Let me, sorry, let me rewrite that.

01:10 Okay.

01:12 So typically operating is like the daily activities.

01:16 So i'm just going to write that in parentheses.

01:26 Investing is typically related to assets and then long -term assets usually and this is usually related to debt inequity so these are hints as to where each of these items should go okay so we have a which is cash paid for a building so cash paid is an outflow of cash and it's for a building and building is an asset a long -term asset so cash paid for a building should go under investing.

02:09 I'll make it capital.

02:12 So a goes under investing...

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