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An Analysis of Corporate Cash Flow Activities

Analyze the transactions above and indicate whether each transaction resulted in a cash flow from:
(a) operating activities, (b) investing activities, (c) financing activities, or (d) noncash investing and financing activities.

Global Corporation had the following transactions during 2006.

1. Issued $50,000 par value common stock for cash.
2. Collected $11,000 of accounts receivable.
3. Declared and paid a cash dividend of $25,000.
4. Sold a long-term investment with a cost of $15,000 for $15,000 cash.
5. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
6. Paid $14,000 on accounts payable.
7. Purchased a machine for $30,000, giving a long-term note in exchange.

Solution Preview

For your convenience, I have attached a formatted MS Word file containing the text below.

Global Corporation had the following transactions during 2006.
1. Issued $50,000 par value common stock for cash.
2. Collected $11,000 of accounts receivable. ...

Solution Summary

This file contains a formatted MS Excel spreadsheet containing an analysis of the cash flow transactions for the Global Corporation, including: a) operating activities, (b) investing activities, (c) financing activities, or (d) non-cash investing and financing activities.

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