The Blue Company had the following cash transactions during 2021. The Blue Company uses the direct method of presenting the Statement of Cash Flows.
REQUIRED: Fill in the following table by classifying the following transactions of the Blue Company as cash flows from operating activities, investing activities or financing activities and identifying the cash flow as an inflow or outflow.
Transaction
Activity classification?
Operating, Investing, or Financing?
Inflow or Outflow?
Blue made a cash payment to reduce accounts payable
Blue received the repayment of principal on a note
Blue received a cash interest payment
Blue paid dividends to its shareholders
Blue paid salaries
Blue sold investments in equity securities of IBM Corp.