Answer Happy

Alfred Company manufactures men's clothing. During 2019, the company reported the
following items that affected cash. Indicate whether each of these items is a cash flow from
operating activities (O), investing activities (I), or financing activities (F).

Purchased equipment by paying cash: ___
Collected cash on account from customers: ___
Paid dividends to stockholders: ___
Paid cash for supplies: ___
Paid suppliers for fabric: ___
Borrowed money from bank on a note payable:___
Paid interest to bank on the note payable: ___
Paid wages to employees: ___
Sold shares of common stock to new
stockholders: ___
Answer:
Purchased equipment by paying cash: I
Collected cash on account from customers: O
Paid dividends to stockholders: F
Paid cash for supplies: O
Paid suppliers for fabric: O
Borrowed money from bank on a note payable: F
Paid interest to bank on the note payable: O
Paid wages to employees: O
Sold shares of common stock to new
stockholders: F
Difficulty: 2 Medium
Topic: Financial statements-Cash flows
Learning Objective: 01-01 Recognize the information conveyed in each of the four basic
financial statements and the way that it is used by different decision makers (investors, creditors,
and managers).