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.

  • CreatedFebruary 26, 2015
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