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
Related questions
Question

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
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
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