Question
Mammoth Manufacturing purchased a new piece of equipment costing $30,000. Mammoth paid $10,000 cash down and signed a long-term note for the remainder. What types
Mammoth
Manufacturing purchased a new piece of equipment costing
$30,000.
Mammoth
paid
$10,000
cash down and signed a long-term note for the remainder. What types of activities (operating, financing, or investing) are represented by this transaction? How would this transaction be reported in
Mammoth
Manufacturing's statement of cash flows?
Complete the table below to show how this transaction would be reported in
Mammoth
Manufacturing's statement of cash flows and/or its accompanying schedule of noncash investing and financing activities. (Use a minus sign or parentheses to show a cash outflow. If the transaction does not affect a particular section of the statement, leave the cell blank. Do not enter a "0" for any zero balances.)
|
| Cash inflow (outflow) |
Operating activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| |
Investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| |
Financing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| |
Noncash investing and financing activities*. . . . . . . . . . . . . . |
| |
* | From the schedule of noncash investing and financing activites that | |
accompanies the statement of cash flows. |
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