The following transactions and events occurred during the year. Assuming that th

Question

The following transactions and events occurred during the year. Assuming that this company uses the direct method to report cash provided by operating activities, indicate where each item would appear on the statement of cash flows by placing an x in the appropriate column. Answer is not complete. Not Reported on Statement or in Notes Statement of Cash flows Noncash Investing Operating Investing Financingand Financing Activities Activities Activities Activities a. Retired long-term notes b.Paid cash to acquire inventory c. Sold inventory for cash d. Paid cash dividend that was declared in a prior period payable by issuing common stock Accepted six-month note receivable in exchange for plant f. Recorded depreciation expense g. Paid cash to acquire treasury stock h. Collected cash from sales Borrowed cash from bank by signing a nine month note ble j. Paid cash to purchase a patent

Explanation / Answer

Solution :-

A. Retired long term notes payable by issuing common stock.

B. Paid cash to acquire inventory.

C. Sold inventory for Cash.

D. Paid Cash Dividend that was declared in a prior period.

E. Accepted Six month note receivable in exchange for plant assets.

F. Recorded Depreciation Expense.

G. Paid Cash to acquire treasury stock.

H. Collected Cash from sales.

I. Borrowed cash from bank by signing a nine month note payable.

J. Paid Cash to purchase a patent.

Particulars Operating Activities Investing Activities Financing Activities Non-cash Investing and Financing Activities Not Reported on Statement or in Notes A X B X C X D X E X F X G X H X I X J X

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