Question: During 2014 Argentia Ltd entered into the following cash transactions

During 2014 Argentia Ltd. entered into the following cash transactions. Classify each transaction as operating, financing, or investing cash flows and indicate whether it’s a cash inflow or outflow. Explain your thinking in each case.
a. Inventory is purchased for $100,000.
b. Dividends of $75,000 are paid to shareholders.
c. $500,000 is borrowed from the bank.
d. Office furniture is purchased for $20,000 to furnish the president’s office.
e. Four delivery trucks are sold for $22,500.
f. Common shares are sold to investors for $500,000.
g. Payments of $30,000 are collected from customers.
h. Insurance for the next two years costing $8,000 is purchased.


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  • CreatedFebruary 26, 2015
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