Motif Furniture is an Austin-based furniture company. For each of the following

Question

Motif Furniture is an Austin-based furniture company. For each of the following first-quarter transactions, indicate whether operating (O), investing (1), or financing activities (F) are affected and whether the effect is a cash inflow (+) or outflow ), or (NE) if the transaction has no effect on cash. Transaction Activity Cash Flow 1. Bought used equipment for cash. 2. Paid cash to purchase new equipment. 3. Declared and paid cash dividends to stockholders. 4. Collected payments on account from customers. 5. Recorded and paid interest on debt to creditors 6. Repaid principal on loan from bank. 7.1 Prepaid rent for the following period. 8. Made payment to suppliers on account.

Explanation / Answer

Motif furniture is an Austin based furniture company .

Transaction Activity Cash flow 1. Bought used equipment for cash I - 2. Paid cash to purchase new equipment I - 3. Declared and paid cash dividends to stockholders. F - 4. Collected payments on account from customers. O + 5. Recorded and paid interest on debt to creditors. O - 6. Repaid principal on loan from bank. F - 7. Prepaid rent for the following period. O - 8. Made payments to suppliers on account. O -

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.