Classification of Cash Flows
Response to the following problem:
The following are several transactions and events that might be disclosed on a company's statement of cash flows:
A. Issuance of common stock F. Sale of land at cost
B. Purchase of building G. Conversion of bonds to common stock
C. Net income H. Increase in accounts payable
D. Increase in accounts receivable I. Payment of cash dividends
E. Depreciation expense J. Issuance of a stock dividend
Required
1. Identify in which section (if any) of the statement of cash flows each of the preceding items would appear and indicate whether it would be an inflow (addition) or outflow (subtraction).
2. Under IFRS, how may the payment of cash dividends be classified?