Question

Below are a number of transactions that took place in Willie Corporation during the past year:

Indicate how each of them would be classified on a statement of cash flow by selecting the appropriate option from the dropdown provided under Activity and Cash inflow/Outflow. (If no option is suitable, select option "None".)

Options for Activity: Financing, Investing, None, or Operating

Options for Cash Inflow / Outflow: Cash Inflow, Cash Outflow, or None

ACTIVITY CASH INFLOW/OUTFLOW

A.) Common stock was sold for cash:

B. Equipment was sold for cash

C. A long term loan was made to a subsidiary

D. Interest was received on loan to subsidiary

E. Interest Payable, a curren liability, was reduced

F. A stock dividend was declared and issued on common stock

G. A building was acquired by issuing shares of common stock

H. Accrued Income Taxes, a current liability account, was reduced

I. Long term investments were sold

J. Cash dividends were declared and paid.

K. Preferred stock was sold for cash

L. Bonds were retired

M. Dividends were received on an investment

N. Equipment was purchased by giving a long term note to the seller

Answer 1

Answer:

A. Common stock was sold for cash: Financing

B. Equipment was sold for cash Investing

C. A long term loan was made to a subsidiary Investing

D. Interest was received on loan to subsidiary Investing

E. Interest Payable, a current liability, was reduced Operating

F. A stock dividend was declared and issued on common stock None

G. A building was acquired by issuing shares of common stock None

H. Accrued Income Taxes, a current liability account, was reduced Operating

I. Long term investments were sold Investing

J. Cash dividends were declared and paid. Financing

K. Preferred stock was sold for cash Financing

L. Bonds were retired Financing

M. Dividends were received on an investment Investing

N. Equipment was purchased by giving a long term note to the seller None