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Activity Classification During the last 2 years of operations, Barnes Company had the following transactions: Required: Classify each of these transactions as an operating
Activity Classification During the last 2 years of operations, Barnes Company had the following transactions: Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity and indicate whether the activity is a source of cash or a use of cash. a. Reported a loss for the year ($420,000). b. Reported profits of $5,880,000 for the most recent year. c. Issued bonds with a six-year maturity date for $1,680,000. d. Retired a long-term note payable. e. Sold a 30% interest in a company. f. Paid cash dividends of $1,680,000. h. Purchased a new plant for $4,200,000. h. Sold equipment for $420,000. i. Issued common stock for $840,000.
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