Determining Effects of Transactions on Statement of Cash Flows Dell Inc. is a leading manufacturer of personal
Question:
Determining Effects of Transactions on Statement of Cash Flows Dell Inc. is a leading manufacturer of personal computers and servers for the business and home markets. For each of the following transactions, indicate whether net cash inflows (outflows) from operating activities \((\mathrm{O})\), investing activities \((\mathrm{I})\), or financing activities \((\mathrm{F})\) are affected and whether the effect is an inflow (+) or outflow ( - ), or (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 cash account is affected.)
1. Recorded and paid income taxes to the federal government.
2. Issued common shares for cash.
3. Paid rent for the following period.
4. Recorded an adjusting entry for expiration of a prepayment.
5. Paid cash to purchase new equipment.
6. Borrowed cash and signed notes payable in five years.
7. Collected cash from customers.
8. Purchased raw materials inventory on account.
9. Recorded and paid salaries to employees. \( \qquad \)
10. Purchased new equipment by signing a three-year note.
Step by Step Answer:
Financial Accounting
ISBN: 9780070001497
4th Canadian Edition
Authors: Patricia A. Libby, Daniel Short, George Kanaan, Maureen Libby Gowing, Robert Libby