### Impact of Transactions Involving Issuance of Stock on Statement of Cash FlowsFrom the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows.| **Item** | **Type of Activity** ||----------|----------------------|| Issuance of common stock for cash | ![Dropdown](dropdown-icon) || Issuance of preferred stock for cash | ![Dropdown](dropdown-icon) || Issuance of common stock for equipment | ![Dropdown](dropdown-icon) || Issuance of preferred stock for land and building | ![Dropdown](dropdown-icon) || Conversion of preferred stock into common stock | ![Dropdown](dropdown-icon) |Dropdown options for **Type of Activity**:- Financing- Investing- Not reported- Operating### Explanation of Format and UsageFor each item listed above, determine the appropriate type of activity it should be categorized under in the statement of cash flows. You can use the dropdown menus to select from the following options:1. **Financing**: Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.2. **Investing**: Activities related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.3. **Not reported**: Transactions that do not need to be reported separately on the statement of cash flows.4. **Operating**: Activities that constitute the primary or main activities of the entity and other activities that are not investing or financing activities.This segmentation helps in understanding the nature of various financial transactions and their effects on the company’s cash flow, providing deeper insights into its financial health and operational efficiency. ### Impact of Transactions Involving Treasury Stock on the Statement of Cash Flows#### InstructionsFrom the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows.| Item | Type of Activity ||------|-------------------|| Repurchase of common stock as treasury stock | **[Dropdown: Financing / Investing / Not reported / Operating]** || Reissuance of common stock (held as treasury stock) | **[Dropdown: Financing / Investing / Not reported / Operating]** || Retirement of treasury stock | **[Dropdown: Financing / Investing / Not reported / Operating]** |#### Explanation:Please select the appropriate classification for each transaction involving treasury stock. These transactions can generally be classified into one of the following categories:- **Financing Activities**: Transactions that result in changes in the size and composition of the equity capital and borrowings of the entity.- **Investing Activities**: Transactions that involve the acquisition and disposal of long-term assets and other investments not included in cash equivalents.- **Operating Activities**: Principal revenue-producing activities of the entity and other activities that are not investing or financing activities.- **Not reported**: Activities that are not included in the cash flow statement.In this educational exercise, determine which type of activity best describes each transaction listed. Use the dropdown menu to select the appropriate type of activity for each item.#### Graph/Diagram ExplanationThe image includes a table with two columns: "Item" and "Type of Activity." Each row under "Item" lists a different treasury stock transaction. Adjacent to each transaction, under "Type of Activity," is a dropdown menu with four options (Financing, Investing, Not reported, Operating).

The cash flow statement is prepared to find the net cash inflow or outflow from the business.

Impact of Transactions Involving Isuance of Stock on Statement of Cash Flows From the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows. Item Type of Activity Issuance of common stock for cash Issuance of preferred stock for cash Issuance of common stock for equipment Issuance of preferred stock for land and building Conversion of preferred stock into common stock Financing Investing Not reported Operating

Impact of Transactions Involving Isuance of Stock on Statement of Cash Flows From the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows. Item Type of Activity Issuance of common stock for cash Issuance of preferred stock for cash Issuance of common stock for equipment Issuance of preferred stock for land and building Conversion of preferred stock into common stock Financing Investing Not reported Operating

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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Similar questions

Which of the following is shown on a statement of cash flows? A share dividend A share split An appropriation of retained earnings None of these answer choices are correct
Which of the following is the appropriate general journal entry to record the declaration of cash dividend? a. Retained Earnings XXX Cash XXX b. Cash Dividend Payable XXX Cash XXX c. Paid-In Capital Cash Dividend Payable XXX XXX d. Cash Dividends Cash Dividends Payable XXX XXX
Do you add or subtract total retained earnings with paid in capital when accounting stock?
The section in the statement of cash flows for reporting the receipt of cash from dividend revenue is: Multiple Choice O Operating activities. Financing activities. Investing activities. Schedule of noncash investing or financing activity. This is not reported on the statement of cash flows.
The sale of treasury stock will be reported as a in the section of the cash flow statement. O Cash Outflovw; Operating O Cash Inflow, Financing O Cash Inflow; Operating O Cash Outflow; Financing
use the information to make a common size balance sheet
2. a. In what section of the statement of cash flows would a Gain be reported when the indirect method is used? Noncash activities note Investing Activities Financing Activities Operating Activitiesb. In what section of the statement of cash flows is the purchase of treasury stock reported? Investing Activities Operating Activities Noncash activities note Financing Activities
Cash outflows related to dividend payments will appear in the the Statement of Cash Flows. section on Investing Financing Operating
Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventory Total current assets Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity Preferred stock, $ 50 par value Common stock, $ 1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 611,000 272,000 $ 52,500 22,500 178,000 290,000 $ 543,000 66,200 339,000 $948,200 $ 95,100 78,700 12,000 $ 185,800 159,400 $ 345,200 $ 100,000 80,000 190,000 233,000 $ 603,000 $948,200
Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated other comprehensive income d. Realized capital