Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The first answer is provided as an example. Cash InflowTransactionType of Activityor Outflow1. Payment of employee salaries.CO2. Sale of land for cash.3. Purchase of rent in advance.4. Collection of an account receivable.5. Issuance of common stock.6. Purchase of inventory.7. Collection of notes receivable.8. Payment of income taxes.9. Sale of equipment for a note receivable.10. Issuance of bonds.11. Loan to another company.12. Payment of a long-term note payable.13. Purchase of treasury stock.14. Payment of an account payable.15. Sale of equipment for cash.

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Answered: Cash Inflow Transaction Type of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI) or cash outflow (CO), or has no effect on cash (NE). The first answer is provided as an example.

Cash Inflow
Transaction
Type of Activity
or Outflow
1. Payment of employee salaries.
CO
2. Sale of land for cash.
3. Purchase of rent in advance.
4. Collection of an account receivable.
5. Issuance of common stock.
6. Purchase of inventory.
7. Collection of notes receivable.
8. Payment of income taxes.
9. Sale of equipment for a note receivable.
10. Issuance of bonds.
11. Loan to another company.
12. Payment of a long-term note payable.
13. Purchase of treasury stock.
14. Payment of an account payable.
15. Sale of equipment for cash.

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