Explore BrainMass

Explore BrainMass

    Classifying inflows and outflows of cash/ Cash flow concepts

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Classify each of the following items as an inflow ( I) or an outflow ( O) of cash, or as neither ( N) (See attachment "Classifying inflow for items")

    Classifying inflow and outflow of cash
    Items Changes
    Cash +100
    Account payable -1,000
    Note payable +500
    Long-Term Debt -2,000
    Inventory +200
    Fixed Asset +400
    Account Receivable -700
    Net Profits +600
    Depreciation +100
    Repurchase of stock +600
    Cash dividends +800
    Sales of stock +1000

    Cash Flow Concept
    Cash Sales
    Credit Sales
    Account Receive are collective
    Assets with 5 yrs life is purchased
    Depreciation is taken
    Amortization of goodwill is taken
    Sales of common stock
    Retirement of outstanding bonds
    Five insurance premium is paid for the next 3 yrs

    © BrainMass Inc. brainmass.com March 4, 2021, 11:34 pm ad1c9bdddf


    Solution Summary

    Tutorial gives you the classifications and discusses how each transaction impacts the cash flow.