91Ó°ÊÓ

Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Issued common stock. g. Purchased treasury stock. b. Redeemed bonds. h. Sold long-term investments. c. Issued preferred stock. i. Sold equipment. d. Purchased patents. j. Purchased buildings. e. Net income. \(\mathrm{k}\). Issued bonds. f. Paid cash dividends.

The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were \(\$ 685,000\) and accounts receivable decreased by \(\$ 43,500\) during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was \(\$ 46,000\) and income tax payable decreased by \(\$ 5,200\) during the year, what was the amount of cash payments for income tax?