### 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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