Computing the cash effect of transactions [15 min]Use the McKnight Exercise Equipment data...

Computing the cash effect of transactions [15 min]

Use the McKnight Exercise Equipment data in Exercise

Requirement

1. Compute the following:

a. New borrowing or payment of long-term notes payable, with McKnight Exercise having only one long-term note payable transaction during the year.

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b. Issuance of common stock, with McKnight Exercise having only one common stock transaction during the year.

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c. Payment of cash dividends.

Computing the cash effect of acquiring assets [10 min]

McKnight Exercise Equipment, Inc., reported the following financial statements for 2012:

Requirement

1. Compute the amount of McKnight Exercise’s acquisition of plant assets. McKnight Exercise sold no plant assets.