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Hi, could someone help me with this question please. Thank you Instructions: - read question 3 of the first picture. Surplus of land sold... -
Hi, could someone help me with this question please. Thank you
Instructions:
- read question 3 of the first picture. "Surplus of land sold..."
- in this scenario what type of item/ activity is this in a Cash Flow statement?
Options:
-1 Investing activity . 2. financing. 3 operating 4. operating and investing 5. operating and Financing activity 6 . Financing and investing.
I chose Operating but it was wrong
I chose Investing but it was wrong
I am on my last attempt
Thank you!
1. Inventory costing $290,000 was purchased on account. A new vehicle costing $32,000 was purchased. Mouawad paid $6,500 as a down payment, and the remaining $25,500 was 2. financed through a bank loan. 3. Surplus land was sold for $88,000, which was $21,000 more than its original cost. During the year, the company made a payment of $23,500 on its mortgage payable: $2,938 of this amount was for the 4. interest on the debt. 5. Wages of $41,000 were charged to expense as they were incurred. No wages were owing to the employees at the end of the year. 6. The company declared and paid dividends of $28,000. Identify how each item would be reported in Mouawad's statement of cash flows. Transaction Activity 1. Operating 2. Investing 3. Investing 4. Operating & Financing 5. Operating 6. Financing
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