1. Fill in the table by indicating if it is an increasing (+) or decreasing (-)
ID: 2583867 • Letter: 1
Question
1. Fill in the table by indicating if it is an increasing (+) or decreasing (-) transaction. Also indicate if it is an operating (O), investing (I), or financing (F), activity. + or - O, I, or F
Cash payment of dividends
2,000
Cash payment for inventory
120,650
Cash payment for expenses
61,000
Cash payment for wages
45,250
Cash payment for interest expense
925
Cash payment for purchase of equipment
25,350
Cash payment for repayment of debt
14,000
Cash collection of accounts receivable
340,500
Cash collection of interest revenue
12,500
Cash collection of dividend revenue
10,500
Cash proceeds from sale of equipment
12,000
Cash proceeds from sale of common stock
55,000
2. Using the information in the table from question 1, complete the following statement of cash flows using the direct method. List each transaction and amount under the appropriate section. Be sure to indicate if it is increasing or decreasing (+ or -). You may not need to use all of the lines.
Cash from Operating Activity
Amount
Net cash __ (provided or used) by operating activity
Cash from Investing activity
Amount
Net cash _____ (provided or used) by investing activity
Cash from Financing Activity
Amount
Net cash __ (provided or used) by financing activity
Net change in cash during period
Cash at beginning of period 27,000
Cash at end of period
Cash payment of dividends
2,000
Cash payment for inventory
120,650
Cash payment for expenses
61,000
Cash payment for wages
45,250
Cash payment for interest expense
925
Cash payment for purchase of equipment
25,350
Cash payment for repayment of debt
14,000
Cash collection of accounts receivable
340,500
Cash collection of interest revenue
12,500
Cash collection of dividend revenue
10,500
Cash proceeds from sale of equipment
12,000
Cash proceeds from sale of common stock
55,000
Explanation / Answer
1.
2.
Cash payment of dividends 2000 (-) (F) Cash payment for inventory 120650 (-) (O) Cash payment for expenses 61000 (-) (O) Cash payment for wages 45250 (-) (O) Cash payment for interest expense 925 (-) (O) Cash payment for purchase of equipment 25350 (-) (I) Cash payment for repayment of debt 14000 (-) (F) Cash collection of accounts receivable 340500 (+) (O) Cash collection of interest revenue 12500 (+) (O) Cash collection of dividend revenue 10500 (+) (I) Cash proceeds from sale of equipment 12000 (+) (I) Cash proceeds from sale of common stock 55000 (+) (F)Related Questions
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