Motif Furniture is an Austin-based furniture company. For each of the following first-quartertransactions, indicate whether operating (O), investing (I), or financing activities (F) are affectedand whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if the transaction has noeffect on cash.1. Bought used equipment for cash.2. Paid cash to purchase new equipment.3. Declared and paid cash dividends to stockholders.4. Collected payments on account from customers.5. Recorded and paid interest on debt to creditors.6. Repaid principal on loan from bank.7. Prepaid rent for the following period.8. Made payment to suppliers on account.
Motif Furniture is an Austin-based furniture company. For each of the following first-quartertransactions, indicate whether operating (O), investing (I), or financing activities (F) are affectedand whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if the transaction has noeffect on cash.1. Bought used equipment for cash.2. Paid cash to purchase new equipment.3. Declared and paid cash dividends to stockholders.4. Collected payments on account from customers.5. Recorded and paid interest on debt to creditors.6. Repaid principal on loan from bank.7. Prepaid rent for the following period.8. Made payment to suppliers on account.
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
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.10E: Components of the Statement of Cash Flows Identify each of the following items as operating (O),...
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Motif Furniture is an Austin-based furniture company. For each of the following first-quarter
transactions, indicate whether operating (O), investing (I), or financing activities (F) are affected
and whether the effect is a
effect on cash.
1. Bought used equipment for cash.
2. Paid cash to purchase new equipment.
3. Declared and paid cash dividends to stockholders.
4. Collected payments on account from customers.
5. Recorded and paid interest on debt to creditors.
6. Repaid principal on loan from bank.
7. Prepaid rent for the following period.
8. Made payment to suppliers on account.
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