Classifying events on the statement of cash flows
The following transactions pertain to the operations of Stone Company for 2011:
1. Acquired $24,000 cash from the issue of common stock.
2. Provided $40,000 of services on account.
3. Incurred $25,000 of other operating expenses on account.
4. Collected $32,000 cash from accounts receivable.
5. Paid a $2,000 cash dividend to the stockholders.
6. Paid $18,000 cash on accounts payable.
7. Performed services for $8,000 cash.
8. Paid a $6,000 cash advance for a one year contract to rent equipment.
9. Recognized $9,000 of accrued salary expense.
10. Accepted an $18,000 cash advance for services to be performed in the future.
Required
a. Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.
b. Prepare a statement of cash flows. (There is no beginning cash balance.)
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