Problem

Determining Cash Flow Statement Effects of TransactionsHewlett-Packard is a leading manufa...

Determining Cash Flow Statement Effects of Transactions

Hewlett-Packard is a leading manufacturer of computer equipment for the business and home markets. For each of the following recent transactions, indicate whethernet cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow (+) or outflow (−), or (NE) if the transaction has no effect on cash. (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.)

_____ 1. Purchased raw materials inventory on account.

_____ 2. Prepaid rent for the following period.

_____ 3. Purchased new equipment by signing a three - year note.

_____ 4. Recorded an adjusting entry for expiration of a prepaid expense.

_____ 5. Recorded and paid income taxes to the federal government.

_____ 6. Purchased investment securities for cash.

_____ 7. Issued common stock for cash.

_____ 8. Collected payments on account from customers.

_____ 9. Sold equipment for cash equal to its net book value.

_____ 10. Issued long - term debt for cash.

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