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Cash Flow Transactions for statement of cash flows

For each of the transactions, identify:
1. If the transaction is a cash inflow (CI), or a cash outflow (CO), or a non cash flow transaction (NT).
2. Each transaction as an operating activity (OA), an investing activity (IA), or a financing activity (FA), or a non cash flow transaction (NT).

1. Proceeds from issuance of debt.
2. Payments for taxes.
3. Purchase of short-term investments.
4. Collections of dividends.
5. Payment of long-term debt.
6. Proceeds from sale of fixed assets (plant and equipment).
7. Payments to suppliers of goods and services.
8. Proceeds from sales of short-term investments.
9. Declaration of a stock split.
10. Collections from customers.
11. Payment of cash dividends.
12. Proceeds from issuance of common or preferred stock.
13. Payments to employees.
14. Purchases of fixed assets (plant and equipment).
15. Collections of interest.

Explain the cash impact of various transactions, and provides examples
Identify in which section of the cash flow statement each account would appear, and explains why

Solution Preview

For each of the transactions, identify:

1. If the transaction is a cash inflow (CI), or a cash outflow (CO), or a non cash flow transaction (NT).
2. Each transaction as an operating activity (OA), an investing activity (IA), or a financing activity (FA), or a non cash flow transaction (NT).

1. Proceeds from issuance of debt.
- CI - Cash Inflow
- FA- Financing Activity

This is a cash inflow from the issuance of debt.

2. Payments for taxes.

- CO - Cash Outflow
- OA- Operating Activity

This is a cash outflow from the operating activity.

3. Purchase of short-term investments.

- CO - ...

Solution Summary

Solution explains Cash Flow Transactions for placement in a statement of cash flows

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