Gingerbread Corp hired a new intern for the summer. The intern was assigned the job of preparing the year-end statement of cash flow but was having some trouble trying to determine where to classify the following transactions. TRANSACTION Cash Flow Cash payment of dividends to common stockholders 30,000 Cash payment for purchase of land 468,000 Cash proceeds from sale of equipment 15,000 Cash proceeds from issuing Gingerbread common stock 45,000 Cash payments on long-term note payable 175,000 Cash payments to purchase stock in another company 51,000
Gingerbread Corp hired a new intern for the summer. The intern was assigned the job of preparing the year-end statement of cash flow but was having some trouble trying to determine where to classify the following transactions. TRANSACTION Cash Flow Cash payment of dividends to common stockholders 30,000 Cash payment for purchase of land 468,000 Cash proceeds from sale of equipment 15,000 Cash proceeds from issuing Gingerbread common stock 45,000 Cash payments on long-term note payable 175,000 Cash payments to purchase stock in another company 51,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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23. Gingerbread Corp hired a new intern for the summer. The intern was assigned the job of preparing the year-end statement of
| TRANSACTION | Cash Flow |
| Cash payment of dividends to common stockholders | 30,000 |
| Cash payment for purchase of land | 468,000 |
| Cash proceeds from sale of equipment | 15,000 |
| Cash proceeds from issuing Gingerbread common stock | 45,000 |
| Cash payments on long-term note payable | 175,000 |
| Cash payments to purchase stock in another company | 51,000 |
Transcribed Image Text:Investing
Financing
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| Cash payment of dividends to common stockholders
Cash payment for purchase of land
Cash payments on long-term note payable
Cash proceeds from sale of equipment
Cash payments to purchase stock in another company
Cash proceeds from issuing Gingerbread common stock
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Expert Solution
Step 1
The cash flow statement is an essential part of the financial statements of the organization. It is helpful for the stakeholders that they can identify the organization's financial situation as the firm have a sufficient amount of cash to meet out their obligation. It can be repaired using direct and indirect methods.
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