Listed below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, investing, financing, or noncash activity. Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. The first answer is provided as an example Transaction Type of Cash Inflow Activity or Outflow 1. Issuance of common stock. Financing 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. Operating Cash inflow 5. Issuance of a note payable. 6. Purchase of inventory. Operating Cash outflow 7. Repayment of a note payable. Financing 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash No effect 10. Issuance of bonds. Financing Cash inflow 11. Investment in bonds. 12. Payment of interest on bonds payable. 13. Payment of a cash dividend. Financing 14. Purchase of a building. Investing 15. Collection of a note receivable. Investing Cash inflow
Listed below are several transactions. For each transaction, indicate whether the cash effect of each transaction is reported in a statement of cash flows as an operating, investing, financing, or noncash activity. Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. The first answer is provided as an example Transaction Type of Cash Inflow Activity or Outflow 1. Issuance of common stock. Financing 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. Operating Cash inflow 5. Issuance of a note payable. 6. Purchase of inventory. Operating Cash outflow 7. Repayment of a note payable. Financing 8. Payment of employee salaries. Operating Cash outflow 9. Sale of equipment for a note receivable. Noncash No effect 10. Issuance of bonds. Financing Cash inflow 11. Investment in bonds. 12. Payment of interest on bonds payable. 13. Payment of a cash dividend. Financing 14. Purchase of a building. Investing 15. Collection of a note receivable. Investing Cash inflow
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 2EB: In which section of the statement of cash flows would each of the following transactions be...
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