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In the following list, identify each item as operating (O), investing (I), financing (F), or not
separately reported on the statement of cash flows (N).
_______ Proceeds from issuance of bonds payable
_______ Interest expense
_______ Redemption of bonds payable at maturity
Solution
1)Financing activity- issuance of bond is for financing our long term needs of business
2) operating activity - Assuming interest is paid on loan taken for operating activity (working
capital loan) otherwise it will be a part of financing activity
3)Financing activity .

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