Question

Classify the following into Cash flows from (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities while preparing a Cash flow statement:

1. Purchase of fixed Assets
2. Issue of share capital
3. Payment of income tax
4. Payment of dividend
5. Payment of interest
6. Sale of long-term investments
7. Interest received
8. Dividend received
9. Repayment of long-term borrowings

Answer 1

Operating Activities	Investing Activities	Financing Activities
Payment of income tax	Purchase of fixed assets	Issue of share capital
	Sale of long-term investments	Payment of dividend
	Interest received	Payment of interest
	Dividend received	Repayment of long-term borrowings