ted in the statement of cash flows are operating, investing, an Classify each of the transactions listed below as: Operating activity-add to net income. Operating activity-deduct from net income. 1. 2. 3. Investing activity. Financing activity. Reported as significant noncash activity 4. 5. The transactions are as follows. Transactions Classifications of Activities (a) Issuance of common stock. Financing Activity (b) Purchase of land and building. Investing Activity Financing Activity (c) Redemption of bonds. (d) Sale of equipment. Investing Activity (e) Depreciation of machinery. Operating Activity-Add to Net Income (f) Amortization of patent. Operating Activity-Add to Net Income (g) Issuance of bonds for plant assets. Reported as Significant Noncash Activity (h) Payment of cash dividends. Financing Activity (i) Exchange of furniture for office equipment. Reported as Significant Noncash Activity (j) Purchase of treasury stock. Financing Activity (k) Loss on sale of equipment. Operating Activity-Add to Net Income (1) Increase in accounts receivable during the year. Operating Activity-Deduct from Net Income (m) Decrease in accounts payable during the year. Operating Activity-Deduct from Net Income v

ted in the statement of cash flows are operating, investing, an Classify each of the transactions listed below as: Operating activity-add to net income. Operating activity-deduct from net income. 1. 2. 3. Investing activity. Financing activity. Reported as significant noncash activity 4. 5. The transactions are as follows. Transactions Classifications of Activities (a) Issuance of common stock. Financing Activity (b) Purchase of land and building. Investing Activity Financing Activity (c) Redemption of bonds. (d) Sale of equipment. Investing Activity (e) Depreciation of machinery. Operating Activity-Add to Net Income (f) Amortization of patent. Operating Activity-Add to Net Income (g) Issuance of bonds for plant assets. Reported as Significant Noncash Activity (h) Payment of cash dividends. Financing Activity (i) Exchange of furniture for office equipment. Reported as Significant Noncash Activity (j) Purchase of treasury stock. Financing Activity (k) Loss on sale of equipment. Operating Activity-Add to Net Income (1) Increase in accounts receivable during the year. Operating Activity-Deduct from Net Income (m) Decrease in accounts payable during the year. Operating Activity-Deduct from Net Income v

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.21MCE

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