Question

Classifying Cash Flow Statement Components

The following table presents selected items from a recent cash flow statement of General Mills, Inc. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities. (General Mills uses the indirect method of reporting cash flows from operating activities).
DOLE DOLE FOOD COMPANY, INC.
Selected items from its Cash Flow Statement
1. Long-term debt repayments
2. Change in receivables
3. Depreciation and amortization
4. Change in accrued liabilities
5. Dividends paid
6. Change in income taxes payable
7. Cash received from sales of assets and businesses
8. Net income
9. Change in accounts payable
10. Short-term debt borrowings
11. Capital expenditures

Answer 1

1. Long term debt payment - Financing activities

2.Changes in Receivables - Operating activities

3. Depreciation and amortization - Operating activities

4. Changes in accrued liabilities - Operating activities

5. Dividend paid - Financing activities

7. Cash Received from sales of assets and business - Investing activities

8. Net Income - Operating activities

9. Change in accounts payable - Operating activities

10. Short term debt borrowings - Financing activities

11. Capital Expenditures - Investing activities