Question

Mincs Investments Inc. had the following transactions listed in the "transaction" column below.

Instructions:

Complete the chart indicating:

(a) Whether each transaction should be classified as an Operating (0), Investing (I) or Financing (F) activity, or No effect (NE)

(b) The amount of cash inflow (+), outflow (-) or if it has no effect on cash (NE) and the amount.

Transaction	Classification	Cash Inflow or Outflow
Example: Paid accounts payable $25,000	O	-$25,000
Sold equipment for $1,500.
Paid insurance for one year $3,600.
Received a dividend on investment in stock of another company for $18,000
Collected accounts receivable $8,700.
Purchased equipment and paid by signing a 2-year promissory note with a value $90,000
Purchased inventory on account, $16,000
Paid dividends to preferred shareholders of $26,000
Paid creditors interest of $15,000
Sold an investment for $15,000
Provided services for cash of $7,500.
Received interest income on bank account amount $2,000
Purchased land in exchange for common shares for $800,000.

Answer 1