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Determining Cash Flow Statement Effects of Transactions
For each of the following transactions, indicate whether operating (O), investing (1), or financing activities (F) are affected and whether the effect is a
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_______ 1. Purchased new equipment with cash.
_______ 2. Recorded and paid income taxes to the federal government.
_______ 3. Issued shares of stock for cash.
_______ 4. Prepaid rent for the following period.
_______ 5. Paid cash to purchase new equipment.
_______ 6. Issued long-term promissory notes for cash.
_______ 7. Collected payments on account from customers.
_______ 8. Recorded and paid salaries and wages to employees.
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Fundamentals Of Financial Accounting
- Use the following cash transactions relating to Warthoff Company to determine the cash flows from operating, using the direct method.arrow_forwardAnalysis of Longmind Companys accounts revealed the following activity for Equipment, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a cash source, cash use, or noncash transaction.arrow_forwardDescribe the relationship between changes in cash and changes in noncash assets, liabilities, and stockholders equity.arrow_forward
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