Question

for the following events write OP for operating, I if Invensting, F for Finance and S if supplementary.

1. sold land for cash

2.issued our own common stock for cash

3. borrowed cash from bank

4. paid a cash divident

5. bought a machine for cash

6. issued stock for land

7.lent out cash to a branch

8. change in A/R

9. depreciation expense

10. bought treasury stock for cash

please check # 19 as well

2 N 15 Cash Flow Questions For the following events, write op" if operating I if I hyrating, "F" if Finance and "s" t supplementary sold land for cash Issued our own common stuck for cash borrowed cash from bank peld a carl dindead bought a nechine for Carl Issued stock for land leit out carly to branch change in AR expense bought treasury the for cash Giver het income = 20,000, depr expa 2,000, Alet, vou inventory ., for Alp + 3,000, salary penable you ă sale of land +300 emortintion of putent sou Kind cast from operations depreciation 19)

19. given : net income = 20,000 , depr exp= 2,000. a/r + 1,000; inventory -1,500 , a/p +3,000 ; salary payable -400 , gain on sale of land +300 ; amorization of potent = 500. find cash from operations

Answer 1

1. sold land for cash - I

2.issued our own common stock for cash - F

3. borrowed cash from bank - F

4. paid a cash divident - F

5. bought a machine for cash - I

6. issued stock for land - S

7.lent out cash to a branch - S

8. change in A/R - OP

9. depreciation expense - S

10. bought treasury stock for cash - F

Cash from operations

Net income 20,000

+ Depreciation (non cash) 2,000

+ Amortisation of patent 500

- Gain on sale of land (investing activity) (300)

+ Decrease in assets & increase in liabilities

Decrease in inventory 1,500

Increase in accounts payable 3,000

- Increase in assets & decrease in liabilities

Decrease in salary payable (400)

Increase in accounts recievable (1,000)

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25,300