Li Eng Corporation had these transactions during 1998: (a) Purchased a machine for ($ 30,000), giving a
Question:
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.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471169192
1st Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso