Question

Exercise 17-7 Identify each of the following transactions as an operating activity (O), an investing activity (1), a financing activity (F), a non-cash investing and financing activity (NIF), or a trans- action that is not reported on the cash flow statement (N). For each cash flow, indicate whether the item increases (+) or decreases (-) cash. Assume the direct method is used to report cash flows from operating activities. for the cash w statement a. NIF e.I- g.O+ Activity (+)/) Transactions Acquisition of a building by issuance of common shares а. I Issuance of common shares for cash ь. Payment of accounts payable c. d. Acquisition of equipment by issuance of note payable Purchase of long-term investment e. f. Payment of wages to employees Collection of cash interest h. Distribution of stock dividend Repurchase of common shares Amortization of bond discount Collection of accounts receivable TOrh fl

Answer 1

(+)/(-) NA a b C Activity NIF F 0 . oubo -- Transactions Acquisition of building by isuuance of common shares Isuuance of common shares for cash Payment of accounts payable Acquisition of equipment by isuuance of note payable Purchase of long term investment Payment of Wages to employees Collection of cash interest Distributoin of stock dividend Repurchase of common shares Amortization of bond discount Collection of accounts receivables Movement of Cash No Movement Inflow Outflow No Movement Outflow Outflow Inflow Outflow Outflow No Movement Inflow 0 . hF i F NIF | k 0 NA +