Harley-Davidson is a leading manufacturer of heavy-weight motorcycles. For each of the following recent transactions, indicate whether
Question:
Harley-Davidson is a leading manufacturer of heavy-weight motorcycles. For each of the following recent transactions, indicate whether net cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow (+) or outflow (−), or use (NE) if the transaction has no effect on cash. (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.)
_____ 1. Purchased raw materials inventory on account.
_____ 2. Prepaid rent for the following period.
_____ 3. Purchased new equipment by signing a three-year note.
_____ 4. Recorded an adjusting entry for expiration of a prepaid expense.
_____ 5. Recorded and paid income taxes to the federal government.
_____ 6. Purchased investment securities for cash.
_____ 7. Issued common stock for cash.
_____ 8. Collected payments on account from customers.
_____ 9. Sold equipment for cash equal to its net book value.
_____ 10. Issued long-term debt for cash.
Step by Step Answer:
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge