BREWER ND LL INTRO MGRL ACTG CON+ AC
BREWER ND LL INTRO MGRL ACTG CON+ AC
19th Edition
ISBN: 9781260711851
Author: BREWER
Publisher: McGraw-Hill Publishing Co.
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Chapter 13, Problem 8P
To determine

Operating Cash Flow: Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations of a company.

Investing Cash Flow: Investing Cash Flow is the cash flow where there is change in the capital structure of the company.

Determine whether the below mentioned transactions can be classified into Operating, Financial or Investing activities. Put an X mark under each column in the format provided in the question.

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Applying Financial Statement Linkages to Understand TransactionsConsider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, and statement of cash flows. Complete the table below to explain the effects and financial statement linkages. Refer to Exhibit 2.10 as a guide for the linkages.a. Owners invested cash in the company in exchange for shares of common stock.b. The company received cash from the bank for a loan.c. The company purchased equipment to manufacture goods for sale and paid with cash.d. The company manufactured a custom piece of inventory and paid cash for materials and labor. The company sold the inventory for more than cost, and the customer promised to pay for the inventory in 30 days.e. The company paid monthly rent for a manufacturing space.f. The company paid cash dividends to the owners.g. The company received cash from the customer in transaction d.To indicate the account increases (+), enter "1" in the answer…
Classifying Accounting Transactions. Presented below is a list of accounting transactions for the Green Company. Classify each of the transactions as an operating (O) activity transaction, an investing (I) activity transaction, a financing (F) activity transaction, or as none-of-the-above (N). Purchase of machinery for cash Cash payment on loan principal Collection of cash on outstanding accounts receivable Payment of a stock dividend Sale of preferred stock for cash Prepaid the office rent for six months Cash payment of income tax expense Sale of land held as an investment for cash Declared (but did not pay) a cash dividend Purchased treasury stock using cash
It is the amount collected by the business in advance from the customers before the business actually provide the goods or services to the customers. a. Bank overdrafts b. Outstanding expenses c. Accounts payable d. Unearned revenues

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BREWER ND LL INTRO MGRL ACTG CON+ AC

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