Question: Listed below are eight transactions. In each case, identify whether the transaction is an example of financing, investing, or operating activities and which of the
Listed below are eight transactions. In each case, identify whether the transaction is an example of financing, investing, or operating activities and which of the financial statements it would affect.
1. Common stock is issued for $500,000 in each.
2. Twenty units of inventory are sold for $50 each.
3. Employee wages are paid.
4. A new warehouse facility is purchased.
5. Principal payments on outstanding debt are paid.
6. Dividends are paid to the shareholders.
7. A 4-year-old vehicle, used as a delivery truck, is sold for $9,000, its book value.
8. A utility bill for March is paid in April.
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