Determining the Effects of Transactions on Balance Sheet, Income Statement, and Statement of Cash Flows Categories Listed

Question:

Determining the Effects of Transactions on Balance Sheet, Income Statement, and Statement of Cash Flows Categories
Listed here are selected aggregate transactions for ModernStyle Furniture Company from the first quarter of a recent year (dollars in millions). Complete the following tabulation, indicating the sign (+ for increase, ˆ’ for decrease, and NE for no effect) and amount of the effect of each additional transaction. Consider each item independently.
a. Recorded collections of cash from customers owed on open account of $35.2.
b. Repaid $3.1 in principal on with a bank with principal payable within oneyear.

Cash Flow from Operating Activities Current Transaction Current Assets Gross Profit Liabilities a. b.

Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...