Answered

Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided below. Codes may be used more than once, or not at all.

A. Investing activity; cash inflow
B. Investing activity; cash outflow
C. Financing activity; cash inflow
D. Financing activity; cash outflow
E. Operating activity; cash inflow
F. Operating activity; cash outflow
G. Noncash investing and financing activity

Codes:
1. Collected amounts past due from customers
2. Converted bonds payable into common stock
3. Paid the utility bill
4. Issued checks to employees



Answer :

GinnyAnswer

Final answer:

Past due amounts collected from customers are reported as cash inflow from operating activities.


Explanation:

Event: Collected amounts past due from customers

Designation: E. Operating activity; cash inflow

Explanation: When a company collects past due amounts from customers, it represents cash inflow from operating activities on the statement of cash flows since it relates to the primary revenue-generating activities of the business.


Learn more about cash flow statement here:

https://brainly.com/question/32731828


Other Questions