Question
Neo Watch Company produces pocket watches and has had the following transactions: 1. Retired longterm bonds. 2. Sold a warehouse for $600,000. 3. Issued a
Neo Watch Company produces pocket watches and has had the following transactions:
1. Retired longterm bonds.
2. Sold a warehouse for $600,000.
3. Issued a long-term note payable for $350,000.
4. Purchased a new robotic system to automate manufacturing operations.
5. Purchased a 40 percent interest in Hazel Works, an electronics manufacturer.
6. Reported a loss on the sale of old equipment of $6,000.The equipment was sold for $3,000 in cash.
7. Obtained a long-term bank loan.
8. Paidcashdividendsof$200,000.
Required
For purposes of the statement of cash flow, classify each of these transactions as an operating, investing, or financing activity. Additionally, indicate whether the activity is an inflow of cash or an outflow of cash.
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