Question

Codes I + Investing activity; cash inflow I - Investing activity; cash outflow F + Financing activity; cash inflow F - Financing activity; cash outflow O + Operating activity; cash inflow O - Operating activity; cash outflow NC Noncash investing and financing activity Events or Transactions (10 points) _____ 16. Paid the weekly payroll _____ 17. Paid an account payable _____ 18. Issued bonds payable for cash _____ 19. Declared and paid a cash dividend _____ 20. Paid cash for a new piece of equipment _____ 21. Purchased treasury stock for cash _____ 22. Paid cash for stock in another company _____ 23. Received interest on a long-term bond investment _____ 24. Received cash for sales _____ 25. Sold a long-term stock investment for cash at book value

Answer 1

Operating cashflow has to do with the everyday running of the business which includes sales, and receiving revenue.

Financing cashflow has to do with capital which includes equity and long term debt.

Investing has to do with fixed assets and other company securities (purchase and sale therefore).

If cash is coming in, it is an inflow and if it is going out, it is an outflow.

16. Paid the weekly payroll ⇒ Operating activity; cash outflow.

17. Paid an account payable ⇒ Operating activity; cash outflow.

18. Issued bonds payable for cash ⇒ Financing activity; cash inflow

19. Declared and paid a cash dividend ⇒ Financing activity; cash outflow

20. Paid cash for a new piece of equipment ⇒ Investing activity; cash outflow.

21. Purchased treasury stock for cash ⇒ Financing activity; cash outflow

22. Paid cash for stock in another company ⇒ Investing activity; cash outflow.

23. Received interest on a long-term bond investment ⇒ Operating activity; cash outflow.

24. Received cash for sales ⇒ Operating activity; cash outflow.

25. Sold a long-term stock investment for cash at book value ⇒ Investing activity; cash inflow.