QUESTION 1 Match all 6 transactions with the proper section of the Cashflow Statement and whether it is a positive or negative amount. (Assume that Indirect Method was used to prepare Cashflow Statement.) Proceeds from sale of investments in another company Purchased new manufacturing equipment Proceeds from acquiring a short term loan increase in inventory Payment of a dividend on Common Stock Decrease in Accounts Receivable A. Positive (Inflow) Investing Cashflow B. Positive Adjustment to Operating Cashflow C. Negative (Outflow) Financing Cashflow D. Negative (Outflow) Investing Cashflow E. Negative Adjustment to Operating Cashflow F. Positive (inflow) Financing Cashflow QUESTION 2 Retained earnings represents: O 1. Cash available for dividends. O 2. The amount initially invested in the business by stockholders. 3. Cash available for expansion and growth. 4. Income that has been reinvested in the business rather than distributed as dividends to stockholders. QUESTION 3 In order to raise the funds needed to expand its fleet of delivery vehicles, UPS Corporation sold 100,000 shares of its $2 par value common stock for $15. Select the one correct journal entry to record this transaction. .C. Common Stock..$,300,000 C. Contributed Capita$200,000 2 db Cash..$.1,500,000 .cr. Contributed Capita1,300,000 O 3. db Common Stock.... 200,000 db Contributed Capital.$1,300,000 $1,500,000 O 4. db Cas$1.500,000 Common Stock$1,500,000 QUESTION 1 Match all 6 transactions with the proper section of the Cashflow Statement and whether it is a positive or negative amount. (Assume that Indirect Method was used to prepare Cashflow Statement.) Proceeds from sale of investments in another company Purchased new manufacturing equipment Proceeds from acquiring a short term loan increase in inventory Payment of a dividend on Common Stock Decrease in Accounts Receivable A. Positive (Inflow) Investing Cashflow B. Positive Adjustment to Operating Cashflow C. Negative (Outflow) Financing Cashflow D. Negative (Outflow) Investing Cashflow E. Negative Adjustment to Operating Cashflow F. Positive (inflow) Financing Cashflow QUESTION 2 Retained earnings represents: O 1. Cash available for dividends. O 2. The amount initially invested in the business by stockholders. 3. Cash available for expansion and growth. 4. Income that has been reinvested in the business rather than distributed as dividends to stockholders. QUESTION 3 In order to raise the funds needed to expand its fleet of delivery vehicles, UPS Corporation sold 100,000 shares of its $2 par value common stock for $15. Select the one correct journal entry to record this transaction. .C. Common Stock..$,300,000 C. Contributed Capita$200,000 2 db Cash..$.1,500,000 .cr. Contributed Capita1,300,000 O 3. db Common Stock.... 200,000 db Contributed Capital.$1,300,000 $1,500,000 O 4. db Cas$1.500,000 Common Stock$1,500,000
