Which is investing activity: purchase equipment, pay dividends, pay interest , capital

Related BrainMass Solutions

• Statement of Cash Flows: Classification of Transactions

  Issuance of capital stock 4. Financing activity b. Purchase of land and building 3. Investing activity c. Redemption of bonds 4. Financing activity d. Sale of equipment 3. Investing activity e. Depreciation of machinery 1.

• Cash Flow Transactions for statement of cash flows

  - CI - Cash Outflow - IA- Investing Activity This is a cash outflow from the investing activity. 15. Collections of interest.

• MQ, TF, Exercises: financial statements, ratios, entries

  False Exercise 1 Classify each of the following as a(n): A. operating activity B. investing activity C. financing activity ----- 1. Issuance of stocks ----- 2. Sale of equipment ----- 3. Purchase of stock ----- 4.

• Accounting and Finance: Balance Sheet and Income Statement

  Purchase of Plant and Equipment -700 Net Cash Provided by (Used in) Investing Activity -700 Cash Dividends (Common Stock) -200 Notes Payable Increase 100 Issuance of Long Term Debt, Net 100 Net Cash Provided by (Used in) Financing

• Classify Activities as operating, investing, financing

  (OA) (CO) 3.Purchase of short-term investments. (IA) (CO) 4.Collections of dividends. (IA) (CI) 5.Payment of long-term debt. (FA) (CO) 6.Proceeds from sale of fixed assets (plant and equipment).

• E4-9 2002 accounting records of Winona Ryder Co.

  Sale of aircraft is an investing activity Purchase of equipment is an investing activity Payment of dividends is a financing activity. Solution is on the attached excel sheet. The solution is in excel.

• Important information about Classifying Cash Flow Transactions

  Purchase of short-term investments. Collections of dividends. Payment of long-term debt. Proceeds from sale of fixed assets (plant and equipment). Payments to suppliers of goods and services.

• Why is it important to classify cash flows according to operating, investing, and financing activities? What does each category represent?

  , interest Financing Activities Cash flow from financing activity indicates: 1) Obtaining cash from issuing debt and repaying the amounts borrowed and 2) Obtaining cash from shareholders and paying them dividends 3) Amount of interest paid

• Classifying Cash Flow Transactions

  Purchase of short-term investments. IA & CO 4. Collections of dividends. OA & CI - Could also be classified as an Investing Activity 5. Payments of long-term debt. FA & CO 6. Proceeds from sale of fixed assets (plant and equipment) IA & CI 7.