Putnam Corporation had these transactions during 2014. Analyze the transactions

Question

Putnam Corporation had these transactions during 2014. Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities. (a)Purchased a machine for $30,000, giving a long-term note in exchange. (b)Issued $50,000 par value common stock for each. (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 of accounts receivable. (g)Paid $18,000 on accounts payable.

Explanation / Answer

Considering the above meaning we can conclude as follows;

A.Non cash investing and financing activity. As it does not include any type of Cash flows.

B.Financing activity

C. Non cash investing and Financing activity

D. Financing activity

E.Investing activity

F.Operating activity

G.operating activity.

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