Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used.
Issued bonds for $200,000 cash.
Purchased equipment for $150,000 cash.
Sold land costing $20,000 for $20,000 cash.
Declared and paid a $50,000 cash dividend.
Which of the following statement is correct?
A.
Item one is cash inflow from investing activities.
B.
Item two is cash outflow from investing activities.
C.
Item three is cash inflow from financing activities.
D.
Item four is cash inflow from financing activities.