The following cash transactions occurred in six real-world companies. Indicate the type of cash flow activity (operating, investing, or financing) using the drop-down menu for each transaction below. Also, indicate whether the transaction represents an inflow or an outflow of cash. 1. In January, 2018 Ford Motor Company announced that it was acquiring Autonomic and TransLoc to enhance its development of driverless automobiles. No price was given. Assume this was a cash purchase. 2. During the third quarter of 2018 (July 1 through September 30), Facebook, Incorporated paid approximately $5.8 billion for expenses. 3. During the third quarter of 2018 (July 1 through September 30), General Electric Company sold some of its business units, including its Value-Based Care Division. These sales generated cash inflows of $5.6 billion. 4. During the third quarter of 2018 (July 1 through September 30), General Motors Company borrowed $32.8 billion using notes payable. 5. During the third quarter of 2018 (July 1 through September 30), International Business Machines (IBM), Incorporated collected approximately $19.1 billion in cash from revenue related to the products and services it sold. 6. During the third quarter of 2018 (July 1 through September 30), McDonald's, Incorporated paid $780 million of dividends.
The following cash transactions occurred in six real-world companies. Indicate the type of cash flow activity (operating, investing, or financing) using the drop-down menu for each transaction below. Also, indicate whether the transaction represents an inflow or an outflow of cash. 1. In January, 2018 Ford Motor Company announced that it was acquiring Autonomic and TransLoc to enhance its development of driverless automobiles. No price was given. Assume this was a cash purchase. 2. During the third quarter of 2018 (July 1 through September 30), Facebook, Incorporated paid approximately $5.8 billion for expenses. 3. During the third quarter of 2018 (July 1 through September 30), General Electric Company sold some of its business units, including its Value-Based Care Division. These sales generated cash inflows of $5.6 billion. 4. During the third quarter of 2018 (July 1 through September 30), General Motors Company borrowed $32.8 billion using notes payable. 5. During the third quarter of 2018 (July 1 through September 30), International Business Machines (IBM), Incorporated collected approximately $19.1 billion in cash from revenue related to the products and services it sold. 6. During the third quarter of 2018 (July 1 through September 30), McDonald's, Incorporated paid $780 million of dividends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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