Question: would like know why answer for n. is Investing, not operations. Classifying cash flows by type of activity. Indicate whether each of the following PROBLEM
Classifying cash flows by type of activity. Indicate whether each of the following PROBLEM 6.1 FOR SELF-STUDY transactions of the current period would appear as an operating, investing, or financing activity in the statement of cash flows. If any transaction would not appear in the statement of cash flows, suggest the reason. Assume the firm uses U.S. GAAP. a. Disbursement of $96,900 to merchandise suppliers. op. b. Receipt of $200,000 from issuing common shares. c. Receipt of $49,200 from customers for sales made this period. Op d. Receipt of $22,700 from customers this period for sales made last period.. Op c. Receipt of $1,800 from a customer for goods the firm will deliver next period. Op f. Disbursement of $16,000 for interest expense on debt. Op 8. Disbursement of $40,000 to acquire land. IN h. Issue common shares with market value of $60,000 to acquire land. Op W i. Disbursement of $25,300 as compensation to employees for services rendered this period. OP j. Disbursement of $7,900 to employees for services rendered last period but not paid for last period. P. k. Disbursement of $53,800 for a patent purchased from its inventor_IN/ 1. Acquisition of a building by issuing a note payable to a bank. P m. Disbursement of $19,300 as a dividend to shareholders. n. Receipt of $12,000 from the sale of equipment that originally cost $20,000 and had $8,000 of accumulated depreciation at the time of sale. Mb
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
