How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies.
ii. Takings from customers for the month.
iii. Capital paid into the business by the owner
A) i. Operating outflow
ii. Operating inflow
iii. Does not appear in the statement of cash flows
B) i. Investing outflow
ii. Operating inflow
iii. Financing inflow
C) i. Operating outflow
ii. Operating inflow
iii. Financing inflow
D) i. Operating outflow
ii. Operating inflow
iii. Investing inflow

Question

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i. Payment of $600 for hairdressing supplies.
ii. Takings from customers for the month. 
iii. Capital paid into the business by the owner 
A) i. Operating outflow
ii. Operating inflow
iii. Does not appear in the statement of cash flows
B) i. Investing outflow
ii. Operating inflow
iii. Financing inflow
C) i. Operating outflow
ii. Operating inflow
iii. Financing inflow
D) i. Operating outflow
ii. Operating inflow
iii. Investing inflow

Quizplus · Accepted Answer

Payment for supplies is an operating outflow, takings from customers are operating inflows, and capital paid by the owner is a financing inflow.

How Would These Items Be Classified in a Statement of Cash