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The Plastic Lumber Company, Inc., (PLC) is a manufacturer that takes in post-consumer plastics (ie, empty milk jugs) and recycles those plastics into a plastic
The Plastic Lumber Company, Inc., (PLC) is a manufacturer that takes in post-consumer plastics (ie, empty milk jugs) and recycles those plastics into a "plastic lumber that can be used to build furnitur decking, and a variety of other items. Because Plastic Lumber has a strong focus on sustainability, the company managers try, whenever possible, to use recycled materials and to invest in sustainable projects. Last year, the company engaged in several sustainable practices that have an impact on its cash flows. Requirement For each of the transactions listed below, indicate whether the transaction would have affected the operating, investing, or financing cash flows of the company. Additionally, indicate whether each transaction would have increased (+) or decreased (-) cash. Activity PLC became a minority partner in a wind-turbine project by investing $2 million in cash in the project. Operating Investing Financing Increase (+) Cash Decrease (-) Cash Investing Operating Investing Increase (+) Cash Activity Financing Decrease (-) Cash 2 A new delivery truck that uses biofuel was purchased for cash. Operating Investing Increase (+) Cash Financing Decrease (-) Cash Activity 3 PLC built a new building for its manufacturing facility. The new building, is LEED certified and was paid for with cash. transaction would have increased (+) or decreased (-) cash. Investing Increase (+) Cash Activity Financing Decrease (-) Cash 4. PLC sold plastic scrap generated by its manufacturing process. Operating Investing Increase (+) Cash Activity Financing Decrease (-) Cash 5. Engineers and scientists at PLC performed research into whether another kind of post-consumer plastic not currently used in its plastics extrusion process could be used. Activity 6. Throughout the year, PLC participated in several trade shows that featured green products for use by parks and recreation facilities. For each trade show, PLC incurred cash expenses for transportation, registration, meals and lodging, and booth setup. Calculator Operating Investing Increase (+) Cash Financing Decrease (-) Cash Activity Solar panels were installed on PLC's administrative offices to supply 7. part of the elec-tricity needed for its operations. PLC paid cash. Financing (7) Decrease (-) Cash Operating Investing Increase (+) Cash Activity Financing Decrease (-) Cash 8. Six Toyota Prius Hybrid automobiles were purchased for the use of the sales staff. PLC paid cash. Operating Investing Increase (+) Cash Activity Financing Decrease (-) Cash 9. PLC issued common stock during the year to help finance growth. Operating Investing Increase (+) Cash Antholtes Operating Investing Increase (+) Cash Activity Financing Decrease (-) Cash New production equipment that is 75% more energy efficient than the 10. old equipment was purchased for cash
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