Li Eng Corporation had these transactions during 1998: (a) Purchased a machine for ($ 30,000), giving a

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Li Eng Corporation had these transactions during 1998:

(a) Purchased a machine for \(\$ 30,000\), giving a long-term note in exchange.

(b) Issued \(\$ 50,000\) par value common stock for cash.

(c) Collected \(\$ 16,000\) of accounts receivable.

(d) Declared and paid a cash dividend of \(\$ 25,000\).

(e) Sold a long-term investment with a cost of \(\$ 15,000\) for \(\$ 15,000\) cash.

(f) Issued \(\$ 200,000\) par value common stock upon conversion of bonds having a face value of \(\$ 200,000\).

(g) Paid \(\$ 18,000\) on accounts payable.

\section*{Instructions}

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471169192

1st Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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