(16 Points)

1. For each of the following items, indicate whether the cash flows relates to an operating activity, an investing activity, or a financing activity.

	Activity	Inflow or Outflow
a. Cash receipts from customers for services rendered
b. Sale of long-term investments for cash
c. Acquisition of PPE for cash
d. Payment of income taxes
e. Bonds payable issued for cash
f. Payment of cash dividends declared in previous year
g. Purchase of short-term investments (not cash equivalents) for cash
h. Purchases of inventory for cash

(20 Points)

1. Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are:

B :	Balance sheet
SE :	Statement of Stockholders Equity
I :	Income Statement
CF :	Statement of Cash Flows

Financial Statement Item	Financial Statement
a. Office building
b. Trademarks
c. Dividends	SE, CF
d. Proceeds of sale of investments
e. Repayments of bank loan
f. Treasury stock

(8 Points)

12. Examine the financial statements effects template below. Then select the answer that best describes the transaction.

Balance Sheet

Income Statement

Transaction

Cash Asset

+

Noncash Assets

=

Liabil- ities

+

Contrib. Capital

+

Earned Capital

Rev-enues

Expen-ses

=

Net Income

??

-300

300

=

=

A) Repay accounts payable of $300 with cash

B) Collect cash for accounts receivable of $300

C) Purchase inventory of $300 on account

D) Purchase inventory of $300 for cash

E) None of the above

(15 Pts)

13. What information is conveyed by the statement of cash flows? How does the statement convey that information?

I need the right answers please!!