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P13-1B made principle

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You are provided with the following transactions that took place during a recent fiscal

(a) Recorded depreciation expense on the plant assets
(b) Incurred a loss on disposal of plant assets.
(c) Acquired a building by paying cash.
(d) Made principal repayments on a mortgage.
(e) Issued common stock.
(f) Purchased shares of another company to be held as a long-term equity investment.
(g) Paid cash dividends to common stockholders.
(h) Sold inventory on credit. The company uses a perpetual inventory system.
(i) Purchased inventory on credit.
(j) Paid wages to employees.


Complete the table indicating whether each item (1) should be reported as an operating (O) activity,
investing (I) activity, financing (F) activity, or as a noncash (NC) transaction reported in a
separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect.
Assume use of the indirect approach.

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