Question

All businesses are involved in three types of activities-financing, investing, and operating. Listed below are the names and descriptions of companies in several different industries. Abitibi Consolidated Inc.-manufacturer and marketer of newsprint Cal State-Northridge Stdt Union-university student union Oracle Corporation-computer software developer and retailer Sportsco Investments-owner of the Vancouver Canucks hockey club Grant Thornton LLP-professional accounting and business advisory firm Southwest Airlines-low-cost airline For each of the above companies, provide examples of a financing activity, an investing activity, and an operating activity that the company likely engages in. BI U T TI = 1 1 E 2 1 = # # á 4 1 * * O Word(s)

Answer 1

Answer to (a)

	Financing Activity	Investing Activity	Operating Activity
Abitbi Consolidated Inc.	Cash from investors, Bank Loan	Purchase of printing machinery, Investment in securities	Sale of newspapers, magazines etc Production activity, Advertising, delivery of newspapers.
Cal State- Northridge Stdt Union	Government Grants, Donations received, funds from members,	Purchase or sale of fixed assets	Event awareness, Revenues from the event, Revenue from rent charged from stalls, Set up cost, Wages & delivery charges paid, Distributing pamphlets
Oracle Corporation	Borrowings, Stockholders' equity	Purchase ofcomputers, necessary equipments, Investment in shares	Research & development cost paid, wages, Delivery charges
Sportsco Investments	Funds from members, investors, etc.	Purchase of property, Purchase or sale of sports equipments, Purchase of crockery, Sale of obsolete stock	Subscription fees, Maintenance costs, Security charges
Grant Thornton LLP	Capital invested by partners	Purchase of property, Computers, other equipments, Purchase of furniture	Revenue from services, Hiring of professionals, Training costs, depreciation expenses, Stationery Expenses
Southwest Airlines	Loans, Dividend paid, Issue of debentures	Purchase of plots, aircrafts, Investment in securities	Training costs, Maintenance costs, Revenue from tickets, Revenue from restaurants, Rent Revenues

Answer to (b)

Most common activities	Wages paid, Depreciation expenses, Investment in securities, etc.
Not Common activities	Purchase of aircrafts, Purchase of printing machines, etc.