Answer to Test Paper CF No. 1

Test On Statement of Cash Flow Classification

(1)

Operating activities

Payment to suppliers of inventory

(2)

Financing activities

Payment of cash dividends to shareholders

(3)

Investing activities

Proceeds from the disposal of plant and equipment

(4)

Operating activities

Receipt of interest on a note receivable

(5)

Investing activities

Sale of land for cash

(6)

Investing activities

Purchase of plant and equipment

(7)

Investing activities

Dividend received from associate

(8)

Investing activities

Expenses relating to disposal of associate

(9)

Financing activities

Issuance of share capital for cash

(10)

Investing activities

Investment in associate

(11)

Financing activities

Payment of interest on a fixed term loan

(12)

Operating activities

Collections of cash from our customers

(13)

Operating activities

Payment of  utilities