Transaction Type of Activity 1. Issuance of common stock. Financing Cash Inflow or Outflow 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. 5. Issuance of a note payable. Operating Cash inflow Financing Cash inflow Operating Cash outflow 6. Purchase of inventory. 7. Repayment of a note payable. 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash Cash inflow 10. Issuance of bonds. Financing Cash inflow 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. Operating Cash inflow

Transaction Type of Activity 1. Issuance of common stock. Financing Cash Inflow or Outflow 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. 5. Issuance of a note payable. Operating Cash inflow Financing Cash inflow Operating Cash outflow 6. Purchase of inventory. 7. Repayment of a note payable. 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash Cash inflow 10. Issuance of bonds. Financing Cash inflow 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. Operating Cash inflow

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), a noncash investing and financing activity (NIF), or a transaction that is not disclosed on the cash flow statement (N). In addition, indicate the effect that each of the following transactions has on the cash balance. Use + for increase, - for decrease, and 0 for no change. Assume the direct method is used to report cash flows from operating activities. ________ a) Purchase a building by issuance of common shares ________ b) Collection of accounts receivable ________ c) Payment of corporate income tax ________ d) Sale of merchandise on account ________ e) Payment of accounts payable ________ f) Receipt of cash dividends
what are the two methods to prepare cash flow statement? Discuss in detail how cash from operating activities is determined in both the methods. Describe the entire process
Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from Operating Activities - Cash from Financing Activities - Cash from Investing Activities
The primary purpose of the statement of cash flows is to provide information about the investing and financing activities during a period. facilitate banking relationships. provide information about the cash receipts and cash payments during a period. prove that revenues exceed expenses if there is a net income.
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 transac 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. b. Purchased investments for $75,000. 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. d. Acquired equipment for $64,000 cash. e. Declared and issued 100 shares of $20 par common stock as a stock dividend, when the market price of the stock was $32 a share. f. Recognized depreciation for the year,…
The sum of the cash generated or used by each section of the statement of the cash flows should be equal the difference between the beginning and ending balance of the cash and cash equivalent accounts. True or false?
A reader of a statement of cash flows wishes to analyze the major classes of gross cash receipts and gross cash payments from operating activities. Which methods of reporting cash flows from operating activities will supply that information? Both the direct and indirect methods. Only the direct method. Only the indirect method. Neither method.
Net cash provided/used by operating activities can be determined using the __________ (cash, direct, indirect, non-cash, or T-account) method or the _________ (T-account, non-cash, direct, cash, or indirect) method. (Enter answers in alphabetical order.)
Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification.using the capital letter only: . .Operating Activity • L.Investing Activity • F..Financing Activity • OL.Operating and Investing Activity • N.Noncash Transaction Effect on Cash Flows.using the capital letter only: • .Increase • D.Decrease N.No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.
Which of the following is most likely to appear in the operating section of a cash fl ow statement under the indirect method? C . Cash received from customers.
Does the statement of cash flows report only transactions that cause an increase or a decrease in cash? Explain.
can you help me with the last part of the question Indicate whether the transaction increases (+), decreases (–), or increases and decreases (+/-) each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and leave blank for no effect. The first transaction is recorded as an example. (Not all cells require input.)