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Please classify transaction f-o according to the following criteria: 1. is there a cash flow incurred from the transaction? 2. Is it a cash inflow
Please classify transaction f-o according to the following criteria: 1. is there a cash flow incurred from the transaction? 2. Is it a cash inflow or cash outflow? 3. What kind of activity is it?
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Fifteen business transactions of Red Sun Co. are listed below: a. Collected an account receivable from a customer. b. Transferred cash from a money market fund into the general bank account. c. Made a year-end adjusting entry to recognize depreciation expense. d. Paid salaries to employees in the accounting and finance departments. e. Paid a dividend declared in the prior year. f. Declared a dividend to be paid early next year. g. At year-end. purchased for cash an insurance policy covering the next two years. h. Purchased short-term Treasury bills for cash. i. Made payments on accounts payable to merchandise suppliers. j. Issued bonds payable for cash; management plans to use this cash in the near future to modernize production facilities. k. Sold marketable securities at a loss. 1. Collected principal amounts due on a loan (a note receivable). m. Collected interest due on the note receivable described in 1 , above. n. Used the cash received in j, above, for the purpose of modernizing production facilities. o. Made a semiannual interest payment on bonds payable. Instructions: Most of the preceding transactions should be included among the activities summarized in a statement of cash flows. For each transaction that should be included in this statement, indicate whether the transaction should be classified as an operating activity, investing activity, or financing activity. If the transaction should not be included in the current year's statement of cash flows, briefly explain why not. f. Declared a dividend to be paid early next year. g. At year-end, purchased for cash an insurance policy covering the next two years. h. Purchased short-term Treasury bills for cash. i. Made payments on accounts payable to merchandise suppliers. j. Issued bonds payable for cash; management plants to use this cash in the near future to modernize production facilities. k. Sold marketable securities at a loss. 1. Collected principal amounts due on a loan (a note receivable). m. Collected interest due on the note receivable described in 1 , above. n. Used the cash received in j, above, for the purpose of modernizing production facilities. o. Made a serniannual interest payment on bonds payable Step by Step Solution
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