You are provided with the following transactions that took place during a recent fiscal year. Complete the
Question:
You are provided with the following transactions that took place during a recent fiscal year. Complete the table indicating whether each item affects operating activities, investing activities, financing activities, or is a noncash transaction reported in a separate schedule, and represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.
Transaction | Statement of Cash Flow Activity Affected | Cash Inflow, Outflow, or No Effect? | ||||
(a) | Recorded depreciation expense on the plant assets. | Financing Activity Noncash Transaction Operating Activity Investing Activity | Cash Inflow No Cash Flow Effect Cash Outflow | |||
(b) | Recorded and paid interest expense. | Investing Activity Operating Activity Financing Activity Noncash Transaction | Cash Inflow No Cash Flow Effect Cash Outflow | |||
(c) | Recorded cash proceeds from a disposal of plant assets. | Operating Activity Investing Activity Financing Activity Noncash Transaction | No Cash Flow Effect Cash Outflow Cash Inflow | |||
(d) | Acquired land by issuing common stock. | Investing Activity Noncash Transaction Financing Activity Operating Activity | Cash Inflow No Cash Flow Effect Cash Outflow | |||
(e) | Paid a cash dividend to preferred stockholders. | Noncash Transaction Operating Activity Investing Activity Financing Activity | Cash Inflow Cash Outflow No Cash Flow Effect | |||
(f) | Paid a cash dividend to common stockholders. | Investing Activity Operating Activity Financing Activity Noncash Transaction | No Cash Flow Effect Cash Outflow Cash Inflow | |||
(g) | Recorded cash sales. | Investing Activity Financing Activity Noncash Transaction Operating Activity | Cash Inflow Cash Outflow No Cash Flow Effect | |||
(h) | Recorded sales on account. | Operating Activity Noncash Transaction Investing Activity Financing Activity | Cash Inflow No Cash Flow Effect Cash Outflow | |||
(i) | Purchased inventory for cash. | Financing Activity Noncash Transaction Investing Activity Operating Activity | No Cash Flow Effect Cash Outflow Cash Inflow | |||
(j) | Purchased inventory on account. | Financing Activity Noncash Transaction Operating Activity Investing Activity | Cash Outflow Cash Inflow No Cash Flow Effect |
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso