The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc. Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments. Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders. To Indicate: The cash flow activities for the company.

Question

Chapter One Challenge Exercise 1 Expands on: E1-7 LO: 4 Wunderkind Photography entered into the following transactions during February 2022. Stockholders invested $5,000 in the business. Bought photography equipment for a cash payment of $1,000. Bought more photography equipment by signing a $500 note payable. Performed photography services for $400 cash. Performed photography services, and billed the customer $900 on account. Collected $900 from the customer in transaction 5. Paid for February developing and printing, $150. Advertised the business in the Platteville Journal. The $100 cost will be billed to Wunderkind. Paid the advertising bill from transaction 8. Paid $200 for photography supplies. Received $300 cash advance payment from a customer for a photography job to be performed in April. Paid $250 dividend to the stockholders. Instructions: Indicate whether each transaction increases or decreases assets, liabilities, or stockholders’ equity.…

Answer 1

Question

Chapter 1, Problem 75.1C

To determine

Concept Introduction:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc.

Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments.

Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders.

To Indicate:

The cash flow activities for the company.

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