2. Below are several transactions that took place in Seneca Company last year: P
ID: 2580226 • Letter: 2
Question
2.
Below are several transactions that took place in Seneca Company last year:
Paid suppliers for inventory purchases.
Bought equipment for cash.
Paid cash to repurchase its own stock.
Collected cash from customers.
Paid wages to employees.
Equipment was sold for cash.
Common stock was sold for cash to investors.
Cash dividends were declared and paid.
A long-term loan was made to a supplier.
Income taxes were paid to the government.
Interest was paid to a lender.
Bonds were retired by paying the principal amount due.
Required:
Indicate how each of the above transaction would be classified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place an X in the Cash Inflow or Cash Outflow column.
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars O or I or F Cash inflow or outflow Paid suppliers for inventory purchases. O Outflow Bought equipment for cash. I Outflow Paid cash to repurchase its own stock. F Outflow Collected cash from customers. O Inflow Paid wages to employees. O Outflow Equipment was sold for cash. I Inflow Common stock was sold for cash to investors. F Inflow Cash dividends were declared and paid. F Outflow A long-term loan was made to a supplier. I Outflow Income taxes were paid to the government. O Outflow Interest was paid to a lender. O Outflow Bonds were retired by paying the principal amount due. F Outflow
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