For this question, indicate where the transaction would be classified on the sta

Question

For this question, indicate where the transaction would be classified on the statement of cash flows. Assume that the indirect method is used to prepare the statement Issued Common Stock Select one: ? a. Operating activities section b. Investing activities section c. Financing activities section d. Does not represent a cash flow e. Schedule of non-cash investing and financing transactions Determine in which section of a Statement of Cash Flows (indirect method) the purchase of building by issuing common stock would appear Select one: a. Operating activities section b. Investing activities section c. Financing activities section Schedule of non-cash investing and financing transactions

Explanation / Answer

Q1. Answer is c. Financing activities section. Q2. Answer is d. Schedule of non cash investing and financing activities Q3. Answer is d. $ 324000 Explanation: Cash flows from operating activities: Net income for the period 384,000 Adjustment Depreciation 36000 Increasse in prepaid insurance -12000 Increase in Inventory -72000 Decrease in Accounts receivable 45000 Decrease in Unearned revenue -33000 Decrease in wages payable -24000 Net cash provided 324000 Q4. Answer is d. Total contributed capital on the Balance sheet

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