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 Type of Cash Inflow Activity or Outflow 1. Issuance of common stock. Financing Cash inflow 2. Sale of land for cash. Investing Cash inflow 3. Purchase of treasury stock. Financing Cash outflow 4. Collection of an account receivable. Operating Cash inflow 5. Issuance of a note payable. 6. Purchase of inventory. Operating Cash outflow 7. Repayment of a note payable. Financing 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash No effect 10. Issuance of bonds. Financing Cash inflow 11. Investment in bonds. 12. Payment of interest on bonds payable. 13. Payment of a cash dividend. Financing 14. Purchase of a building. Investing 15. Collection of a note receivable. Investing Cash inflow

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 Type of Cash Inflow Activity or Outflow 1. Issuance of common stock. Financing Cash inflow 2. Sale of land for cash. Investing Cash inflow 3. Purchase of treasury stock. Financing Cash outflow 4. Collection of an account receivable. Operating Cash inflow 5. Issuance of a note payable. 6. Purchase of inventory. Operating Cash outflow 7. Repayment of a note payable. Financing 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash No effect 10. Issuance of bonds. Financing Cash inflow 11. Investment in bonds. 12. Payment of interest on bonds payable. 13. Payment of a cash dividend. Financing 14. Purchase of a building. Investing 15. Collection of a note receivable. Investing Cash inflow

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Select the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Terms
Which of these transactions would be part of the investing section of the statement of cash flows using the direct method? A. Cash received from customers B. Dividend payments to shareholders, paid in cash C. Cash paid for purchase of equipment Sales of product, for cash D. Land purchased on a note
The statement of cash flows is normally a required basic financial statement for each period for which an earnings statement is presented. The statement should include a separate schedule listing the financing and investing activities not involving cash. Required: What are financing and investing activities not involving cash? What are two types of financing and investing activities not involving cash? Explain what effect, if any, each of the following seven items would have on the statement of cash flows. accounts receivable inventory depreciation deferred tax liability issuance of long-term debt in payment for a building payoff of current portion of debt sale of a fixed asset resulting in a loss or gain
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. Investing activities $fill in the blank 2 Operating activities $fill in the blank 4 b. Purchased investments for $75,000. Investing activities $fill in the blank 6 c. Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. Financing activities $fill in the blank 8 d. Acquired equipment for…
Which section of the statement of cash flows shows cash inflows and outflows from the issue and repayment of loans? A. Fiancing B. Operating C. Investing D. None of the Above
refer to the photo
On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include a. receipts from the sale of investments b. receipts from the issuance of capital stock c. gains or losses on fixed assets d. payments for cash dividends

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