Explore BrainMass

Classifying inflows and outflows of cash/ Cash flow concepts

This content was STOLEN 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 December 20, 2018, 8:10 am ad1c9bdddf


Solution Summary

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