MAND Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: 0= operating activities, I= investing activities, and F= financing activities. Classification of cash flows for Mandarin Foods Assume this company uses the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. (a) Declared a dividend to be paid early next year. (b) Recorded depreciation expense for the current year. (c) At year-end, paid rent in advance for the next six months. d) Issued canital stock for cash: management plans to use this cash to invest in marketable securities.
MAND Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: 0= operating activities, I= investing activities, and F= financing activities. Classification of cash flows for Mandarin Foods Assume this company uses the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. (a) Declared a dividend to be paid early next year. (b) Recorded depreciation expense for the current year. (c) At year-end, paid rent in advance for the next six months. d) Issued canital stock for cash: management plans to use this cash to invest in marketable securities.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:MANDARIN FOODS
3. Classification of cash flows for Mandarin Foods
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the
following code: 0= operating activities, I investing activities, and F= financing activities.
Assume this company uses the direct method. If the event does not involve a cash flow that should be included in the statement
of cash flows, use an X.
(a) Declared a dividend to be paid early next year.
(b) Recorded depreciation expense for the current year.
(c) At year-end, paid rent in advance for the next six months.
(d) Issued capital stock for cash; management plans to use this cash to invest in marketable securities.
(e) Sold a parcel of unused land at a loss.
(f) Collected principal amount due on a note receivable.
(g) Used the cash received in d, above, to purchase marketable securities.
(h) Collected interest due on note receivable described in f, above.
(i) Made an adjusting entry to accrue interest payable at year-end.
G) Collected account receivable from a customer who made a large credit purchase in a prior period.
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The cash flow statement is prepared to record the cash inflow or outflow from various activities into the business.
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