Refer to AP2– 3.
In Refer 3
Gildan Active wear Inc. specializes in manufacturing and selling T-shirts, sport shirts, and fleece. The following is adapted from a recent statement of financial position dated September 30, 2012. Amounts are in thousands of dollars:
Assume that the following transactions occurred in the first quarter of fiscal year 2013, ended on December 31, 2012:
a. Received $ 630 on sale of intangibles at cost.
b. Paid $ 14,000 in principal on long-term debt.
c. Purchased $ 3,400 in non- current investments for cash.
d. Sold equipment at its cost for $ 600 cash.
e. Purchased additional intangibles for $ 5,400 cash.
f. Issued additional shares for $ 1,500 in cash.
g. Purchased property, plant, and equipment; paid $ 12,450 in cash and $ 9,400 with additional long-term bank loans.
h. Sold other non- current assets at cost for $ 310 cash.
i. Declared and paid $ 9,000 in dividends to shareholders.
Using transactions (a) through (i) in AP2– 3, indicate whether each transaction is an investing (I) or financing (F) activity for the year and the direction of the effect on cash flows (1 for increase and 2 for decrease). Indicate no effect on cash flows related to investing or financing with NE.

  • CreatedAugust 04, 2015
  • Files Included
Post your question