Question

Ashley Booth owns and operates a movie theatre in a small city. For each of the following, state whether the item should be classified as an operating, financing, or investing cash flow, whether the item represents a cash inflow or outflow, and the amount that would be reported on the cash flow statement. Explain your reasoning. Assume Ashley uses ASPE.
a. Sold $150,000 in snacks at the concession stand for cash.
b. Repaid a $25,000 bank loan.
c. Paid employees $100,000 in wages.
d. Gave $5,000 in refunds for tickets purchased but not used.
e. Expensed $30,000 for depreciation.
f. Sold old equipment for $18,000. The loss on the sale was $5,000.
g. Purchased new projection equipment for $10,000 cash. She also agreed to pay the equipment supplier $5,000 in two years.
h. Purchased advertising in local newspapers during the year for $15,000 cash.
i. Ashley contributed $20,000 in cash for additional shares in the theatre.
j. Paid $10,000 in interest on loans.



$1.99
Sales0
Views53
Comments0
  • CreatedFebruary 26, 2015
  • Files Included
Post your question
5000