Question : Indirect Cash Flow Check Please!!!?
I think I have the right statements for each transaction, but I am not too sure if:
Even though some are not on the statement, is source/use still applicable? I think not.
Not sure what requires a “separate schedule.”

TRANS.|STATEMENT|Source/Use/Neither|Sep. Schedule
Bonds Retired (principal paid)|Financing|USE OF CASH
Equipment purchased w/note|NEITHER|SEPARATE
Interest paid on note (interest payable reduced)|Operating|USE OF CASH
Accrued taxes paid (taxes payable reduced)|Operating|USE OF CASH
Long term loan made|Investing|USE OF CASH
Interest rec’d on long term note|Operating|SOURCE OF CASH
Dividends paid|Financing|USE OF CASH
Building acquired for common stock||NEITHER
Common stock sold for cash|Financing|SOURCE OF CASH
Equipment sold for cash|Investing|SOURCE OF CASH
Equipment sold for note|Investing|SOURCE OF CASH
Bonds converted to stock|NEITHER
long term cash loans

Best answer:

Answer by Sandy
You’ve got most of them correct except as follows and for the reasons given:

Interest rec’d on long term note| Investing| SOURCE OF CASH
I chose investing cos the line above this was Long term loan made and you picked Investing, and I like consistency. Actually, a lot depends on the management’s cash mgt policy, and both answers could be right.

Building acquired for common stock| NEITHER| SEPARATE
You need to disclose the fair value of the bldg and the no. of shares issued in exchange

Equipment sold for note| Investing| NEITHER| SEPARATE
This is not a source of cash as no cash was involved. You need to disclose the amount of the note and the book and fair value of the equipment at time of sale.

Bonds converted to stock| NEITHER| SEPARATE
You need to disclose how many bonds were converted into how much stock and if applicable, what was the market value of the stock at time of conversion.