Indicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $19,000 are retired for $22,000 cash, resulting in a $3,000 loss. b. Paid cash dividends of $15,000 to common stockholders. c. Acquired $24,000 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount Effect on financing cash flows

Indicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $19,000 are retired for $22,000 cash, resulting in a $3,000 loss. b. Paid cash dividends of $15,000 to common stockholders. c. Acquired $24,000 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount Effect on financing cash flows

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 2EB: In which section of the statement of cash flows would each of the following transactions be...

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Question

Indicate the effect, if any, that each separate transaction has on financing cash flows.
Note: Select "No Effect" if there is no effect.
a. Long-term notes payable with a carrying value of $19,000 are retired for $22,000 cash, resulting in a $3,000 loss.
b. Paid cash dividends of $15,000 to common stockholders.
c. Acquired $24,000 worth of machinery in exchange for common stock.
Items
a. Long-term notes payable
b. Dividends
c. Machinery
Amount
Effect on financing
cash flows

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