Motif Furniture is an Austin-based furniture company. For each of the following first-quartertransactions, indicate whether operating (O), investing (I), or financing activities (F) are affectedand whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if the transaction has noeffect on cash.1. Bought used equipment for cash.2. Paid cash to purchase new equipment.3. Declared and paid cash dividends to stockholders.4. Collected payments on account from customers.5. Recorded and paid interest on debt to creditors.6. Repaid principal on loan from bank.7. Prepaid rent for the following period.8. Made payment to suppliers on account.
Motif Furniture is an Austin-based furniture company. For each of the following first-quartertransactions, indicate whether operating (O), investing (I), or financing activities (F) are affectedand whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if the transaction has noeffect on cash.1. Bought used equipment for cash.2. Paid cash to purchase new equipment.3. Declared and paid cash dividends to stockholders.4. Collected payments on account from customers.5. Recorded and paid interest on debt to creditors.6. Repaid principal on loan from bank.7. Prepaid rent for the following period.8. Made payment to suppliers on account.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 1CE
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Motif Furniture is an Austin-based furniture company. For each of the following first-quarter
transactions, indicate whether operating (O), investing (I), or financing activities (F) are affected
and whether the effect is a
effect on cash.
1. Bought used equipment for cash.
2. Paid cash to purchase new equipment.
3. Declared and paid cash dividends to stockholders.
4. Collected payments on account from customers.
5. Recorded and paid interest on debt to creditors.
6. Repaid principal on loan from bank.
7. Prepaid rent for the following period.
8. Made payment to suppliers on account.
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