Schomberg Motors Ltd. is a car dealership that sells new and used cars and offers servicing to customers. Classify each of the following cash flows that Schomberg incurred as operating, financing, or investing activities:
a. sale of a new car to a customer
b. purchase of new van for use as a shuttle for customers leaving their cars for servicing
c. purchase of new cars from the manufacturer for sale to customers
d. deposit paid by a customer for a vehicle that will be delivered next year
e. sale of common shares to an investor to pay for an expansion
f. purchase of a piece of land to build the expanded facility
g. repayment of a bank loan
h. sale of old equipment used for providing service to customers
i. payment of utilities

  • CreatedFebruary 26, 2015
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