Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2017: Transaction 1. Samuels purchased inventory on account. Transaction 2. Samuels collected open accounts receivable. Transaction 3. Samuels exchanged a building for land and realized a gain. Transaction 4. Samuels issued 75,000 shares of preferred stock. Transaction 5. Samuels purchased a three-year fire insurance policy. Which of these transactions or parts of these transactions would be included in the financing activity section of the statement of cash flows? Transaction 3 only Transaction 4 only Transactions 3 and 4 None of these transactions would be found in the financing activity section.
QUESTION 4
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Samuels Company prepares its statement of
cash flows using the direct method and engaged in the following transactions during 2017:Transaction 1. Samuels purchased inventory on account.
Transaction 2. Samuels collected open accounts receivable.
Transaction 3. Samuels exchanged a building for land and realized a gain.
Transaction 4. Samuels issued 75,000 shares of preferred stock.
Transaction 5. Samuels purchased a three-year fire insurance policy.Which of these transactions or parts of these transactions would be included in the financing activity section of the statement of cash flows?
Transaction 3 only
Transaction 4 only
Transactions 3 and 4
None of these transactions would be found in the financing activity section.
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