Listed below are several transactions. For each transaction, indicate by letter
ID: 2495109 • Letter: L
Question
Listed below are several transactions. For each transaction, indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), or noncash (NC) activity. Also, indicate whether the transaction is a cash inflow (CI), cash outflow (CO), or no effect on cash (NE). The first answer is provided as an example.
Type of Activity
Cash Inflow or Outflow
Transaction
F
CI
1. Issuance of common stock
2. Issuance of bonds
3. Investment in bonds
4. Collection of a note receivable
5. Sale of inventory
6. Repayment of note payable
7. Payment of a cash dividend
8. Purchase of land for cash
9. Reissue of treasury stock
10. Collection of an account receivable
11. Issuance of a note payable
12. Payment of employee salaries
13. Sale of equipment for a note receivable
14. Payment of interest on bonds payable
15. Sale of a building
Type of Activity
Cash Inflow or Outflow
Transaction
F
CI
1. Issuance of common stock
2. Issuance of bonds
3. Investment in bonds
4. Collection of a note receivable
5. Sale of inventory
6. Repayment of note payable
7. Payment of a cash dividend
8. Purchase of land for cash
9. Reissue of treasury stock
10. Collection of an account receivable
11. Issuance of a note payable
12. Payment of employee salaries
13. Sale of equipment for a note receivable
14. Payment of interest on bonds payable
15. Sale of a building
Explanation / Answer
Type of Activity
Cash Inflow or Outflow
Transaction
F
CI
1. Issuance of common stock
F
CI
2. Issuance of bonds
I
CO
3. Investment in bonds
O
CI
4. Collection of a note receivable
O
CI
5. Sale of inventory
O
CO
6. Repayment of note payable
F
CO
7. Payment of a cash dividend
I
CO
8. Purchase of land for cash
F
CI
9. Reissue of treasury stock
O
CI
10. Collection of an account receivable
O
CI
11. Issuance of a note payable
O
CO
12. Payment of employee salaries
NC
NE
13. Sale of equipment for a note receivable
F
CO
14. Payment of interest on bonds payable
I
CI
15. Sale of a building
Type of Activity
Cash Inflow or Outflow
Transaction
F
CI
1. Issuance of common stock
F
CI
2. Issuance of bonds
I
CO
3. Investment in bonds
O
CI
4. Collection of a note receivable
O
CI
5. Sale of inventory
O
CO
6. Repayment of note payable
F
CO
7. Payment of a cash dividend
I
CO
8. Purchase of land for cash
F
CI
9. Reissue of treasury stock
O
CI
10. Collection of an account receivable
O
CI
11. Issuance of a note payable
O
CO
12. Payment of employee salaries
NC
NE
13. Sale of equipment for a note receivable
F
CO
14. Payment of interest on bonds payable
I
CI
15. Sale of a building
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