Question

Identify the Cashflow Activity - Operating (O), Investing (I), Financing (F), NonCash (NC)

Instructions: Complete the table below by indicating the Cashflow Activity and whether it is positive or negative cash (10pts)

Transaction	Cashflow Activity (O,I,F,NC)	Cashflow -/+
1. Collected an Accounts Receivable $4,000
2. Declared and paid $1 dividend/per share on 10,000 common shares
3. Sold long term investments in the common stock of FaceBook for $8,000 cash
4.Issued common shares in exchange for new equipment (worth $5,000)
5. Repaid a five-year $1,000 note payable
6. Paid employee salaries $2,000
7. Converted $3,000 worth of bonds payable to common shares
8. Acquired a long term investment for $50,000 cash.
9. Sold equipment for $9,000 cash
10. Sold merchandise for $3,000 to customers

Answer 1

Transaction	Cashflow Activity (O,I,F,NC)	Cashflow -/+
1. Collected an Accounts Receivable $4,000	O	+
2. Declared and paid $1 dividend/per share on 10,000 common shares	F	-
3. Sold long term investments in the common stock of FaceBook for $8,000 cash	I	+
4.Issued common shares in exchange for new equipment (worth $5,000)	NC	+
5. Repaid a five-year $1,000 note payable	F	-
6. Paid employee salaries $2,000	O	-
7. Converted $3,000 worth of bonds payable to common shares	NC	-
8. Acquired a long term investment for $50,000 cash.	I	-
9. Sold equipment for $9,000 cash	I	+
10. Sold merchandise for $3,000 to customers	O	+