Below are several transactions for Witherspoon Incorporated, a small manufacturer of decorative glass designs. Required:
For each transaction, indicate (1) whether cash is involved (yes or no), and, if cash is involved, (2) whether Witherspoon should classify it as operating, investing, or financing in a statement of cash flows, and (3) whether the cash is an inflow or outflow. Select N/A if the question is not applicable to the statement.
Transaction Financing Type of Activity Cash Inflow or Outflow
Borrow cash from the bank. Purchase supplies on account. Purchase equipment with cash. Provide services on account. Pay cash on account for b above. Sell for cash a warehouse no longer in use. Receive cash on account for d. above. Pay cash to workers for salaries.