1.Based on the following information, determine the amount of cash paid for curr

Question

1.Based on the following information, determine the amount of cash paid for current year’s inventory:

Cost of goods sold

$545,000

Inventory, prior year end

$105,000

Inventory, current year end

$112,000

Accounts payable, prior year end

$98,500

Accounts payable, current year end

$101,300

1.Classify the following cash flows as either operating, investing, or financing activities:

i.Sold long-term investments for cash

ii.Received cash payments from customers

iii.Received cash from sale of land at a loss

iv.Paid cash for wages and salaries

v.Purchased inventories for cash

vi.Paid cash dividends

vii.Issued common stock for cash

viii.Received cash interest on a note

ix.Paid cash interest on outstanding notes

x.Paid cash for property taxes on building

Cost of goods sold

$545,000

Inventory, prior year end

$105,000

Inventory, current year end

$112,000

Accounts payable, prior year end

$98,500

Accounts payable, current year end

$101,300

Explanation / Answer

i.Sold long-term investments for cash = Investing ii.Received cash payments from customers = Operating iii.Received cash from sale of land at a loss = Investing iv.Paid cash for wages and salaries = Operating v.Purchased inventories for cash = Operating vi.Paid cash dividends = Financing vii.Issued common stock for cash = Financing viii.Received cash interest on a note = Investing ix.Paid cash interest on outstanding notes = Investing x.Paid cash for property taxes on building = Operating

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