Question

Indicate if each transaction and event is (1) a source of cash, (2) a use of...

Indicate if each transaction and event is (1) a source of cash, (2) a use of cash, and/or (3) an adjustment leading to a source or use of cash (assume an indirect format). List also its placement in the statement of cash flows: operations (O), financing (F), investing (I), noncash significant (NCS), noncash nonsignificant (NCN), or no effect (NE).

Example:

Transaction or Event Source Use Adjustment Category in Stmt. of Cash Flows
Cash dividend received X O

a. Decrease in inventory.

b. Paid current portion of long-term debt.

c. Retire treasury stock.

d. Purchase marketable securities (noncurrent).

e. Issue bonds for property.

f. Declare stock dividend.

g. Sell equipment for cash.

h. Convert bonds to preferred stock.

i. Purchase inventory on credit.

j. Decrease in accounts payable from return of merchandise.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In case you have any query, kindly ask in comments.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ndicate the effect that each transaction/event listed here will have on the financial ratio listed opposite...
ndicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, − for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event Financial Ratio Effect a. Purchased inventory on account. Number of days' sales in inventory b. Sold inventory for cash, at a profit. Inventory turnover c. Issued a 10% stock dividend. Earnings per share d....
14. For each of the following items, indicate with the letter X whether the transaction would...
14. For each of the following items, indicate with the letter X whether the transaction would appear in the operating, investing, or financing activities section of the statement of cash flows, or is not reported in any one of these three categories. Assume the indirect method is used for reporting. (6 pts) Transaction Activity Operating Investing Financing None 1. Revenue minus expenses from operations (i.e., net income) 2. Collection of cash dividend. 3. Payment of a cash dividend previously declared....
For each of the following items, indicate which section(s) of the statement of cash flows the...
For each of the following items, indicate which section(s) of the statement of cash flows the effect of this item would be recorded. Issuance of bonds Issuance of a stock dividend Sale of buildings at a loss Purchase of treasury stock Purchase of equipment Amortization of intangible assets Increase in inventory Issuance of common stock for land Depreciation of equipment
Each of the events below may have an effect on the statement of cash flows. Designate...
Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided below. Codes may be used more than once, or not at all. Codes I + Investing activity; cash inflow I - Investing activity; cash outflow F + Financing activity; cash inflow F - Financing activity; cash outflow O + Operating activity; cash inflow O - Operating activity; cash...
Each of the events below may have an effect on the statement of cash flows. Designate...
Each of the events below may have an effect on the statement of cash flows. Designate how the event should be reported within the statement of cash flows using the codes provided below. Codes may be used more than once, or not at all. codes I + investing activity; cash inflow I – investing activity; cash outflow F + financing activity; cash inflow F – financing activity; cash outflow O + operating activity; cash inflow O – operating activity; cash...
For each of the following items, assuming the company reports cash flows from operations using the...
For each of the following items, assuming the company reports cash flows from operations using the Indirect Method, Indicate whether the item is: A positive cash flow from Operating activities = +O A negative cash flow from Operating activities = -O A positive cash flow from Financing activities = +F A negative cash flow from Financing activities = -F A positive cash flow from Investing activities =+I A positive cash flow from Investing activities =-I A non-cash financing and investing...
1. For each transaction, indicate whether a company would classify the related account as an asset,...
1. For each transaction, indicate whether a company would classify the related account as an asset, liability, stockholders' equity, dividend, revenue, or expense. Transactions Related Accounts Account Classification 1. Receive cash from investors. Common Stock 2. Pay rent for the current period. Rent Expense 3. Purchase office equipment. Equipment 4. Pay cash to stockholders. Dividends 5. Provide services to customers. Service Revenue 2. Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Indicate the account classification for each...
Problem 11-4A Prepare a statement of cash flows - indirect method (LO11-2, 11-3) VIDEO PHONES, INC....
Problem 11-4A Prepare a statement of cash flows - indirect method (LO11-2, 11-3) VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018   Net sales $ 3,336,000   Expenses:        Cost of goods sold $ 2,150,000          Operating expenses 898,000          Depreciation expense 31,000          Loss on sale of land 8,400          Interest expense 17,000        Income tax expense 52,000           Total expenses 3,156,400   Net income $ 179,600 VIDEO PHONES, INC. Balance Sheet December 31 2018 2017   Assets   Current assets:      Cash $ 273,440    $ 177,520...
The following transactions were carried out by Crozier Manufacturing Limited. Required: Indicate into which category each...
The following transactions were carried out by Crozier Manufacturing Limited. Required: Indicate into which category each transaction or adjustment is placed in the statement of cash flows: operating (O), financing (F), or investing (I) activities. ------------------A payment of $5,000 was made on a non‐current bank loan.                      -----------------Depreciation expense for equipment was$1,000. ----------------$10,000 of common stock was issued for cash. -----------------Cash dividends of $2,500 were declared and paid to stockholders. A non‐current bank loan was assumed in exchange for equipment...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: a.  Increase in accounts payable b. Payment of dividends c.  Decrease in accrued liabilities d. Issuance of common stock e.  Gain on sale of building f.  Loss on sale of land g.  Depreciation expense h. Increase in merchandise inventory i.   Decrease in accounts receivable j.  Purchase...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT