Question: Refer to P3 8 and use the following chart to

Refer to P3– 8, and use the following chart to identify whether each transaction in P3– 8 results in a cash flow effect from operating (O), investing (I), or financing (F) activities, and indicate the direction and amount of the effect on cash (+ for increase and – for decrease). If there is no cash flow effect, write “none.” The first transaction is provided as an example.
a. Guests at the parks paid $ 566,266 cash in admissions.
b. The primary operating expenses (such as employee wages, utilities, and repairs and maintenance) for the year were $ 450,967, with $ 412,200 paid in cash and the rest on account.
c. Interest paid on long- term borrowings was $ 58,962.
d. The parks sell food and merchandise and operate games. The cash received during the year for these combined activities was $ 355,917. The cost of merchandise sold during the year was $ 90,626.
e. Cedar Fair purchased and built additional buildings, rides, and equipment during the year, paying $ 83,481 in cash.
f. Guests may stay in some of the parks at accommodations owned by the company. During the year, accommodations revenue was $ 74,049; $ 72,910 was paid by the guests in cash and the rest was on account.
g. Cedar Fair paid $ 125,838 on notes payable.
h. The company purchased $ 146,100 in food and merchandise inventory for the year, paying $ 118,000 in cash and the rest on account.
i. The selling, general, and administrative expenses (such as the president’s salary and advertising for the parks, those not classified as operating expenses) for the year were $ 131,882; $ 125,500 was paid in cash and the rest was on account.
j. Cedar Fair paid $ 9,600 on trade payables during the year.

Sale on SolutionInn
  • CreatedAugust 04, 2015
  • Files Included
Post your question