
Concept explainers
Operating activities:
Operating activities refers to the type of activities the company performs, to generate net income. These are important activities of the business, it generates revenue, and expenses by way of manufacturing, distributing, marketing and selling of products or services.
Investment activities:
Investing activities are business activities that involve buying and disposing long-lived assets, which is used in operating activity. Buying and selling of land, buildings, machineries, and equipment for use in the business are the examples of investment activities.
Financing activities:
Financing activities refer to raising funds by way of issuing shares, bonds or to borrow money from bank to meet the financing need of the business, and paying dividends to stockholders, and interest to the lenders.
1, 2, 3, 4, 5, 6, 7, 8 and 9
To classify: each transaction as either as an operating activity, investing activity or financing activity or if no cash is exchanged, as a non-cash event.

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Chapter 3 Solutions
Financial Accounting 8th Edition
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- This means that her variable costs arearrow_forwardThe following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 8,200 Units sold 5,700 Sales $ 741,000 Materials cost $ 164,000 Variable conversion cost used $ 82,000 Fixed manufacturing cost $ 820,000 Indirect operating costs (fixed) $ 114,000 The absorption costing ending inventory is: Multiple Choice $329,000 $325,000 $297,000 $313,000arrow_forwardEleanor Technology, a firm with no net debt, reports cash flow from operations of $7,840 million in its cash flow statement after adding $2,250 million in accruals to earnings. It reported cash investments in operations of $4,680 million. What were Eleanor Technology's free cash flow and earnings for the period?arrow_forward
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