Homework Answers
A) Financing Activity
Issuance of common stock increases the capital of the company, therefore, it is a Financing Activity.
B) Operating Activity
Sale of Merchandise inventory constitute the normal day-to-day activity of the business, therefore it is an operating activity.
C) Operating Activity
Salary paid to employees working for normal running of the business is an operating activity.
D) Investing Activity
Deposition of machinery used in the business is an investing activity because such machinery is used for more than one production cycle.
E) Investing Activity
Investing in the shares of another company is an investing activity because it is done to deploy excess fund available.
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Identify each of the following activities as operating, investing, or financing, A. Issuance of common stock...
Exercise 17-7 Identify each of the following transactions as an operating activity (O), an investing activity...
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 (+)/)...
Use the following abbreviations to answer this question: O Operating activities item I Investing activities item...
Use the following abbreviations to answer this question: O Operating activities item I Investing activities item F Financing activities item Classify each of the following transactions according to whether they are operating, financing, or investing activities: a. Payment of employee wages b. Cash collected from customers for sales c. Payment of dividends d. Purchase of land for an office building e. Repayment of debt owed to a financial institution f. Purchase of shares of another company g. Cash received as...
For each of the items, indicate the type of business activity-operating, investing, or financing. Type of...
For each of the items, indicate the type of business activity-operating, investing, or financing. Type of Activity 1. Purchase of goods for resale Operating 2. Issue of common shares 3. Sale of equipment that the company has finished using 4. Receipt of bank loan 5. Purchase of long-term investment 6. Purchase of equipment 7. Sale of merchandise to customers 8. Payment of salaries to employees 9. Sale of long-term investment 10. Repayment of loan owed to bank 11. Payment of...
on- The major classifications of activities reported in the statement of cash flows are operating, investing,...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
Current Attempt in Progress Use the following abbreviations to answer this question: Operating activities item Investing...
Current Attempt in Progress Use the following abbreviations to answer this question: Operating activities item Investing activities item Financing activities item F Classify each of the following transactions according to whether they are operating, financing, or investing activities using direct method. (Select N/A for a non cash item.) v a. Proceeds from the sale of an investment in another company's shares b. Acquisition of a business c. Cash paid to suppliers of inventory d. Acquisition of a long-term bank loan...
Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing,...
Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Retirement of bonds payable b. Purchase of inventory for cash c. Cash sales d. Repurchase of common stock e. Payment of accounts payable f. Disposal of equipment Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Purchase...
2. Operating, investing, and financing activities and cash flows The statement of cash flows reports a...
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Indicate whether each of the following items should be classified as an operating, investing, or financing activity on...
Indicate whether each of the following items should be classified as an operating, investing, or financing activity on the statement of cash flows. If an item does not belong on the statement, indicate as "NA" (Not applicable). a. Declaration of dividends on common shares, to be paid later b. Payment of dividends on common shares c. Purchase of equipment d. Receipt of cash from the sale of a warehouse e. Receipt of cash through a long-term bank loan f. Interest...
3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a...
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Which of the following is a noncash investing and financing activity? payment of a cash dividend...
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For each of the items, indicate the type of business activity-operating, investing, or financing. Type of Activity 1. Purchase of goods for resale Operating 2. Issue of common shares 3. Sale of equipment that the company has finished using 4. Receipt of bank loan 5. Purchase of long-term investment 6. Purchase of equipment 7. Sale of merchandise to customers 8. Payment of salaries to employees 9. Sale of long-term investment 10. Repayment of loan owed to bank 11. Payment of...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
Current Attempt in Progress Use the following abbreviations to answer this question: Operating activities item Investing activities item Financing activities item F Classify each of the following transactions according to whether they are operating, financing, or investing activities using direct method. (Select N/A for a non cash item.) v a. Proceeds from the sale of an investment in another company's shares b. Acquisition of a business c. Cash paid to suppliers of inventory d. Acquisition of a long-term bank loan...
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