Question
The Neo Watch Company produces pocket watches and has had the following transactions. For purposes of the statement of cash flow, classify each of these
The Neo Watch Company produces pocket watches and has had the following transactions. 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. (Enter positive adjustment to net income as inflow and negative adjustment to net income as outflow. For noncash activites select "Neither inflow or outflow".)
Activity | |||||||
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1. | Retired long-term bonds. | select an activity Investing activityFinancing activityOperating activity | select an option Neither inflow or outflowPositive adjustment (loss)InflowOutflow | ||||
2. | Sold a warehouse for $623,000. | select an activity Investing activityOperating activityFinancing activity | select an option Neither inflow or outflowPositive adjustment (loss)InflowOutflow | ||||
3. | Issued a long-term note payable for $373,000. | select an activity Investing activityOperating activityFinancing activity | select an option Neither inflow or outflowOutflowInflowPositive adjustment (loss) | ||||
4. | Purchased a new robotic system to automate manufacturing operations. | select an activity Financing activityInvesting activityOperating activity | select an option Neither inflow or outflowPositive adjustment (loss)OutflowInflow | ||||
5. | Purchased a 40 percent interest in HazelWorks, an electronics manufacturer. | select an activity Investing activityOperating activityFinancing activity | select an option OutflowPositive adjustment (loss)InflowNeither inflow or outflow | ||||
6. | (i) | Reported a loss on the sale of old equipment of $8,300. | select an activity Investing activityOperating activityFinancing activity | select an option InflowOutflowNeither inflow or outflowPositive adjustment (loss) | |||
(ii) | The equipment was sold for $5,300 in cash. | select an activity Investing activityFinancing activityOperating activity | select an option OutflowPositive adjustment (loss)InflowNeither inflow or outflow | ||||
7. | Obtained a long-term bank loan. | select an activity Investing activityFinancing activityOperating activity | select an option Positive adjustment (loss)OutflowNeither inflow or outflowInflow | ||||
8. | Paid cash dividends of $223,000. | select an activity Investing activityOperating activityFinancing activity | select an option |
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