42) Delgado, Inc. wants to apply for a bank loan. It has put together a cash budget, an income statement and a balance sheet. However, the bank wants it to present a statement of cash flows in...

42) Delgado, Inc. wants to apply for a bank loan. It has put together a cash budget, an income statement and a balance sheet. However, the bank wants it to present a statement of cash flows in addition to the cash budget. Explain the differences between the cash budget and statement of cash flows.

43) Match each of the following transactions with each type of activity found on the statement of cash flows. Each item may be used more than once.

a. operating activity

b. investing activity

c. financing activity

d. not on the statement of cash flows

______ 1. declaration of a stock dividend

______ 2. purchase of inventory on account

______ 3. sale of treasury stock

______ 4. payment of rent

______ 5. payment of accounts payable