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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-tern) Accounts

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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-tern) Accounts receivable Inventory Notes receivable (long-tern) Equipment Factory building Intangibles $22,000 Accounts payable 3.000 Accrued liabilities payable 3,000 Notes payable (current) 20,000 Notes payable (noncurrent) 1.000 Common stock 50,000 Additional paid-in capital 90.000 Retained earnings 5,000 $15.000 4.000 7.000 47.000 10.000 80,000 31.000 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $10,000 cash. b. Lent $5,000 to a supplier, who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year. e Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash. f. Borrowed $9,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $24.000: paid $8.000 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000 Required: Using the events (a) through (), select whether each is an investing or financing activity for the year and the direction of the effect on cash flows ( + for increase and - for decrease). If there is no effect on cash flows, select No Effect. Required: Using the events (a) through (), select whether each is an investing or financing activity for the year and the direction of the effect on cash flows (+ for increase and - for decrease). If there is no effect on cash flows, select No Effect. Transaction Type of Activity Effect on Cash (b) (c) (9) th)

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