Accounting Questions - Financial Position and Cash Flows

Question 1: For each transaction, identify whether the transaction should be considered a cash flow from operating, investing, or financing activities, or whether the transaction is not a cash activity.

a) Purchased shares in another company as a long-term investment for $18,000 cash

Options

• Investing Activity
• Not a Cash transaction
• Operating Activity

b) Purchased a machine for $35,000 by giving a long-term note in exchange.

Options

• Financing Activity
• Not a cash transaction
• Operating Activity

Question 2: Refer to Manigold.png, Prepare the current assets section of the statement of financial position.(List Current Assets in order of liquidity.)

Marigold Corporation's adjusted trial balance contained the following asset accounts at December 21, 2020: Cash $3,400; Treasury Bills (with original maturity of three months) $4,300; Land $42,800; Intangible Assets-Patents $13,200; Accounts Receivable $100,000; Prepaid Insurance $6,000; Inventory $36,100; Allowance for Doubtful Accounts $4,800; and FV-NI (Fair Value-Net Income Investments $11,300. [ad) Prepare the current assets section of the statement of financial position. (List Current Assets in order of liquidity Marigold Corporation Statement of Financial Position [Partial) Current Assets S Total Current AssetsSarasota Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Prepaid Rent $12,500; Goodwill $56,500; Franchise Fees Receivable $3,200; Intangible Assets-Franchises $58,800; Intangible Assets-Patents $42,400; and Intangible Assets-Trademarks $10,400. Prepare the intangible assets section of the statement of financial position. Sarasota Corporation Statement of Financial Position (Partial) V Intangible Assets Total Intangible Assets $