125) A cash flow statement is divided into the following sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For each of the following events, state the section in which it would be listed.
a. Paid cash to retire long-term note payable
b.Payment of wages
c. Issuance of shares
d.Purchase of land
e.Amortization expense
f.Payment of dividends
g.Sale of equipment
h. Equipment rental fee
126) A company's management makes three major types of decisions on an ongoing basis: decisions regardingoperatingactivities, decisions regardinginvestingactivities, and decisions regardingfinancingactivities. Discuss each of these three types of activities, including examples of each type.
127) What do shareholders look for when reviewing and analyzing the income statement?
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