Problem: Determining Cash Flow Statement Effects of Transactions (E12-5) Hewlett

Question

Problem: Determining Cash Flow Statement Effects of Transactions (E12-5) Hewlett-Packard is a leading manufacturer of computer equipment for the business and home markets. For each of the following recent transactions, indicate whether net cash inflows (outflows) from operating activities (O), investing activities (I), or financing activities (F) are affected and whether the effect is an inflow (+) or outflow (-), or use (NE) if the transaction has no effect on cash. (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.) Cash Inflow/ Flow Outflow Item NE 1. Purchased raw materials inventory on account J.E. Inventory Accounts payable

Explanation / Answer

Since No cash is involved

it's clearly given in the question too (the transaction affects net cash flow if and only if the account Cash is affected.)

Since No cash is involved

it's clearly given in the question too (the transaction affects net cash flow if and only if the account Cash is affected.)

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