Question

Kiley Corporation had these transactions during 2022. Classify transactions by type of activity.

a. Purchased a machine for $30,000, giving a long-term note in exchange.
b. Issued $50,000 par value common stock for cash.
c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
d. Declared and paid a cash dividend of $13,000.
e. Sold a long-term investment with a cost of $15,000 for $15,000 cash.
f. Collected $16,000 from sale of goods.
g. Paid $18,000 to suppliers.

Answer 1

Cash flow from Operating Activities

f. Collected $16,000 from sale of goods.

g. Paid $18,000 to suppliers.

Cash flow from Investing Activities

e. Sold a long-term investment with a cost of $15,000 for $15,000 cash.

Cash flow from Financing Activities

b. Issued $50,000 par value common stock for cash.

d. Declared and paid a cash dividend of $13,000.

None-Cash Activity

a. Purchased a machine for $30,000, giving a long-term note in exchange.

c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.

Step-by-step explanation:

Operating Activities - Results from business daily trading operations with customers and suppliers.

Investing Activities - Results from purchases and sell of assets and investments

Financing Activities - Results from a company`s efforts in raising and repayment of capital