Effect of Transactions on Cash Flows State the effect (cash receipt or payment a

Question

Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $210,000 of bonds, on which there was $2,100 of unamortized discount, for $218,000. b. Sold 7,000 shares of $25 par common stock for $56 per share. c. Sold equipment with a book value of $44,000 for $63,400. d. Purchased land for $538,000 cash. e. Purchased a building by paying $73,000 cash and issuing a $90,000 mortgage note payable f. Sold a new issue of $310,000 of bonds at 99. g. Purchased 5,900 shares of $40 par common stock as treasury stock at $77 per share. h. Paid dividends of $2.30 per share. There were 27,000 shares issued and 4,000 shares of treasury stock. Effect Amount Cash payment Cash receipt

Explanation / Answer

Effect of transaction :

a Cash payment -$218000 b Cash receipt $392000 c Cash receipt $63400 d Cash payment -$538000 e Cash payment -$73000 f Cash receipt $306900 g Cash payment -$454300 h Cash payment -$52900

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