1- Effect of Transactions on Cash Flows

State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:

a- Retired $210,000 of bonds, on which there was $2,100 of unamortized discount, for $218,000.

b- Sold 7,000 shares of $20 par common stock for $42 per share.

c- Sold equipment with a book value of $58,200 for $83,800.

d- Purchased land for $541,000 cash.

e- Purchased a building by paying $80,000 cash and issuing a $90,000 mortgage note payable.

f- Sold a new issue of $280,000 of bonds at 98.

f- Purchased 5,700 shares of $35 par common stock as treasury stock at $69 per share.

h- Paid dividends of $2.10 per share. There were 22,000 shares issued and 4,000 shares of treasury stock.

Effect Amount

a- ___________ $___________

b- ___________ $___________

c- ___________ $___________

d- ___________ $___________

e- ___________ $___________

f- ____________ $___________

g- ____________ $___________

h- ____________ $___________

2- Classifying Cash Flows

Identify the type of cash flow activity for each of the following events (operating, investing, or financing):

a.Redeemed bonds _________________

b.Issued preferred stock _________________

c.Paid cash dividends __________________

d.Net income ___________________

e.Sold equipment __________________

f.Purchased treasury stock __________________

g.Purchased patents __________________

h.Purchased buildings __________________

i.Sold long-term investments ___________________

j.Issued bonds ____________________

k.Issued common stock _____________________