The following cash transactions occurred in five real-world companies: 1. During the third quarter of 2016 (July

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The following cash transactions occurred in five real-world companies:
1. During the third quarter of 2016 (July 1 through September 30), Ford Motor Company paid approximately $31.5 billion in expenses related to the production for the vehicles it sold.

2. International Business Machines (IBM), Inc. purchased the mobile and cloud-based web-properties of The Weather Company in 2016. Assume this was a cash purchase.
3. Apple, Inc. borrowed $12 billion in 2016 by issuing bonds payable (long-term debt).
4. Whole Foods Market, Inc. collected $15.7 billion in cash from sales it made during its 2016 fiscal year.
5. During its 2016 fiscal year, Microsoft Corporation paid $11 million of dividends.
6. In January 2017, McDonald’s, Inc. announced plans to sell a major stake in its operations in China and Hong Kong for $1.7 billion. Assume the sale was for cash and that it was completed in 2017.


Required
Determine if each of the preceding transactions should be classified as an operating, investing, or financing activity. Also, identify the amount of each cash flow and whether it was an inflow or an outflow.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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