Question

In: Accounting

Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.

 Classify transactions by type of activity.

 E17.1 (LO 1), C Kiley Corporation had these transactions during 2022.

 a. Purchased a machine for $30,000, giving a long-term note in exchange.

 b. Issued $50,000 par value common stock for cash.

 c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.

 d. Declared and paid a cash dividend of $13,000.

 e. Sold a long-term investment with a cost of $15,000 for $15,000 cash.

 f. Collected $16,000 from sale of goods.

 g. Paid $18,000 to suppliers.

 Instructions

 Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.

 

 

Solutions

Expert Solution

Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash and cash equivalents during the year. A cash flow statement is also known as the statement of cash flows.

It breaks the analysis into

 

  • operating,
  • investing, and
  • financing activities.

  • Cash flows from operating activities: It is a section of the Statement of cash flow that explains the sources and uses of cash from the regular/ day to day business activities. This the the first section of the Statement of Cash Flows.

No. Activity
a. Noncash investing and financing activity
b. Financing activity
c. Noncash financing activity
d. Financing activity
e. Investing activity
f. Operating activity
g. Operating activity

DEEPIKA GOYAL answered 2 years ago
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