Indicate the effect, if any, that each separate transaction has on financing cash flows. (Select "No Effect" if there is r a. Long-term notes payable with a carrying value of $15,800 are retired for $17,200 cash, resulting in a $1,400 loss. b. Paid cash dividends of $11,800 to common stockholders. c. Acquired $20,800 worth of machinery in exchange for common stock. Effect on financing cash flows Items Amount a. Long-term notes payable b. Dividends c. Machinery

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Indicate the effect, if any, that each separate transaction has on financing cash flows. (Select "No Effect" if there is no effect.)
a. Long-term notes payable with a carrying value of $15,800 are retired for $17,200 cash, resulting in a $1,400 loss.
b. Paid cash dividends of $11,800 to common stockholders.
c. Acquired $20,800 worth of machinery in exchange for common stock.
Effect on financing
Items
Amount
cash flows
a. Long-term notes payable
b. Dividends
c. Machinery
Transcribed Image Text:Indicate the effect, if any, that each separate transaction has on financing cash flows. (Select "No Effect" if there is no effect.) a. Long-term notes payable with a carrying value of $15,800 are retired for $17,200 cash, resulting in a $1,400 loss. b. Paid cash dividends of $11,800 to common stockholders. c. Acquired $20,800 worth of machinery in exchange for common stock. Effect on financing Items Amount cash flows a. Long-term notes payable b. Dividends c. Machinery
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