Isted below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, Investing, financing, or noncash activity. Also, Indicate whether the transaction is a cash Inflow or cash outflow, or has no effect on cash. The first answer is provided as an example.
Isted below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, Investing, financing, or noncash activity. Also, Indicate whether the transaction is a cash Inflow or cash outflow, or has no effect on cash. The first answer is provided as an example.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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II
Transcribed Image Text:Listed below are several transactions. For each transaction, Indicate whether the cash effect of each transaction is reported in a
statement of cash flows as an operating, Investing, financing, or noncash activity. Also, Indicate whether the transaction is a cash Inflow
or cash outflow, or has no effect on cash. The first answer is provided as an example.
Transaction
1. Issuance of common stock.
2. Sale of land for cash.
3. Purchase of treasury stock.
4. Collection of an account receivable.
5. Issuance of a note payable.
6. Purchase of inventory.
7. Repayment of a note payable.
8. Payment of employee salaries.
9. Sale of equipment for a note receivable.
10. Issuance of bonds.
11. Investment in bonds.
12. Payment of interest on bonds payable.
13. Payment of a cash dividend.
14. Purchase of a building.
15. Collection of a note receivable.
Type of
Activity
Financing
Cash Inflow
or Outflow
Cash inflow
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